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New Interest Rates Applicable from 14.5.2016
|
Case |
Rate of Interest |
|
Service Tax collected from customer but not deposited to Government |
24%* |
|
Other Cases (Amount not yet paid by Customer) |
15%* |
* There is 3% concession if
value of taxable service provided in previous financial year does not exceed Rs 60 lakh
Q1
What is Due date of Service Tax in following Cases
| Service Provided on | Amount Paid on | Due Date |
| 20-Jun-16 | 25-Jun-16 | ? |
| 20-Jun-16 | 25-Jul-16 | ? |
| Service Provided on | Amount Paid on | Due Date |
| 20-Jun-16 | 25-Jun-16 | 06-Jul-16 |
| 20-Jun-16 | 25-Jul-16 | 06-Jul-16 |
Q2 Suppose Service tax actually deposited on 10 July 2016
What is Interest Rate applicable?
View Answer| Service Provided on | Amount Paid on | Due Date | Service Tax Deposited on | No of Days late | Rate of Interest Applicable |
| 20-Jun-16 | 25-Jun-16 | 06-Jul-16 | 10/07/2016 | 4 | 24%* |
| 20-Jun-16 | 25-Jul-16 | 06-Jul-16 | 10/07/2016 | 4 | 15%* |
* There is 3% concession if
value of taxable service provided in previous financial year does not exceed Rs 60 lakh
Interest Rates Applicable till 13.5.2016
Interest rate depends upon period of delay as per Notification No. 12/2014 ST dated 11.07.2014
|
Period of delay |
Interest rate charged |
|
Upto 6 months |
18% |
|
6 months to 1 year |
First 6 months 18% Remaining period 24% |
|
More than 1 year |
First 6 months 18% Next 6 months 24% Balance period 30% |
* There is 3% concession if
value of taxable service provided in previous financial year does not exceed Rs 60 lakh
Changes have been made by Notification 13/2016 which have superseded Notification 12/2014
