Interest on delayed payment of service tax increased (Now varies from 18% to 30% per annum)

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 :-
Table
Sl.No.        Period of delay                                   Rate of simple interest
(1)                     (2)                                                   (3)
1.              Up to six months                              18 per cent.
2.              More than six months                       18 per cent. for the first six months of delay  
                 and up to one year                            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 1st  day of October, 2014.



(Akshay Joshi)
Under Secretary to the Government of India