Now its costlier affair if you pay the service tax delayed because more you make the delay higher the interest you need to pay. Now you need to pay interest up to 30% if your delay for service tax payment is more than one year. The details of interest rate are shown in the table in given notification.
The text of notification is as below:
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 11th July, 2014
Notification No. 12/2014 – Service Tax
G.S.R.___ (E).- In exercise of the powers conferred by section 75 of the Finance Act, 1994 (32 of 1994) and in supersession of the notification No.26/2004-Service Tax, dated 10th September, 2004, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.601 (E),dated the 10th September,2004, except as respects things done or omitted to be done before such supersession, the Central Government hereby, for the purpose of the said section, fixes the following rates of simple interest per annum for delayed payment of service tax , as given in table below :-
of sample interest
|1||Up to six month||18 per cent|
|2||More than six months and up to one year||18 per cent for the first six months of delay and 24 per cent. for the delay beyond six months.|
|3||More than one year||
18 per cent. for the first six months of delay; 24 per cent for the period beyond six months up to one year and 30 per cent for any delay beyond one year.
2. This notification shall come into force on the 1 st day of October, 2014.
[F. No. 334 /15/2014 -TRU]
Under Secretary to the Government of India