TaxTMI 
TaxTMI 
change of interest rate on late payment of PLA
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....hange of interest rate on late payment of PLA<br> Query (Issue) Started By: - MEHUL ASHAR Dated:- 15-7-2014 Last Reply Date:- 19-7-2014 Central Excise<br>Got 3 Replies<br>Central Excise<br>Respected Sir, As regarding above subject, As u know that till 10-07-2014 the rate of interest on late payment of PLA was 18%,now according to the new budget is there any change in the interest rate.Please....
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.... reply. THANKING U Reply By Pradeep Khatri: The Reply: Dear Mehul, Interest rate changes: Interest rates per annum payable on delayed payments under section 75, are prescribed as follows: Extent of delay * Up to six months 18% * More than six months and upto one year 18% for first six months, and 24% for the period of delay beyond six months * More than one year 18% fo....
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....r first six months, 24% for second six months, and 30% for the period of delay beyond one year * This is applicable from 1st October 2014. * Compare with 6% for refund. * 3% concession on the applicable rate of interest will continue to be available to the small service providers with turnover upto ₹ 60 Lakhs pa. This is for your kind information. Regards Team YAGAY ....
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....and SUN (Management and Indirect Tax Consultants) Reply By Naveed S: The Reply: As per the new budget, in central excise, there is no change in the rate of interest of 18 % for delayed duty payment or for late payment of any pending Govt. dues. However, new rule 8 (3A) has been added in the new budget which is as follows :- " (3A) If the assessee fails to pay the duty declared as payable ....
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....by him in the return within a period of one month from the due date, then the assessee is liable to pay the penalty at the rate of one per cent. on such amount of the duty not paid, for each month or part thereof calculated from the due date, for the period during which such failure continues . Hence, apart from the existing 18% interest for late duty payment, further penalty of 1% is now....
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.... required to be paid. Reply By MEHUL ASHAR: The Reply: THANK U SIR FOR UR GUIDANCE<br> Discussion Forum - Knowledge Sharing ....