Compliance enhancement:

          • Simple interest rates per annum payable under section 75, to vary on the basis of extent of delay in payment of service tax. This will come into force on 1st October 2014.

Extent of delay	Simple interest rate per annum
Up to six months	18%
From six months and upto one year	24%
More than one year	30%

Interest on late service tax: scaled simple interest introduced for delayed payments under section 75 to boost compliance. A graduated interest regime varies simple interest rates per annum under Section 75 according to delay: tiered bands for up to six months, from six months up to one year, and for delays exceeding one year; prescribed by notification as a compliance enhancement with a notified commencement date.