Rate of interest on delay payment of Service Tax under Section 75 of the Finance Act, 1994

[Sudhir Kumar]

What was the rate of interest under section 75 of the Finance Act, 1994 on delay payment of Service Tax for the period 2002-03 to 20027-08? Please share the notification or circular issued in this ragard. As the department has proposed demand of interest on delay payment of Service Tax @ 24% for the period 2002-03 to 2004-05 while from the website I find that the rate of interest was just@15% only.

AI Summary

Clarify applicable annual interest rate under Section 75 Finance Act 1994 for delayed service tax 2002-03 to 2007-08 A taxpayer questions the correct interest rate under section 75 of the Finance Act, 1994 for delayed service tax payments in 2002-03 to 2007-08, noting the department has proposed interest at 24% for 2002-03 to 2004-05 while the taxpayer's sources indicate a 15% rate; the taxpayer requests the controlling notification or circular that fixed the applicable annual interest rates for those years to resolve the discrepancy.