Interest on late payment of service tax

[Raj Malik]

For finalization of balance sheet for FY 2015-16, Reverse charge on manpower supply is required to be paid by us for invoice a billed on 19-11-15 amounting to ₹ 11000. Kindly tell me what should be the rate of interest on late payment of service tax which is to be paid after one year.

AI Summary

Interest Rates on Late Service Tax Payment: 18% (first 6 months), 24% (6-12 months), 30% (beyond 1 year). Rule 7 applies. A query was raised regarding the interest rate on the late payment of service tax under reverse charge for an invoice dated November 19, 2015, amounting to 11,000. Respondents advised that the interest rates are 18% for the first six months, 24% for six months to one year, and 30% beyond one year. It was suggested to determine the point of taxation under Rule 7 of the Point of Taxation Rules, 2011, and calculate interest based on relevant notifications. Interest is to be paid in cash through an online GAR-7 challan, with a possible concession for small service providers.