Amended provisions as per the Finance Bill, 2016 in respect of interest rates for delay in payment of service tax
New interest rates for delay in payment of service tax (Applicable after enactment of the Finance Bill, 2016): Presently, slab rates of interest (i.e. 18% for upto 6 months, 24% for the period from 6 months to 1 year and 30% for the period after 1 year) are provided for late payment of service tax. However, as per Finance Bill, 2016 read with Notification No. 13/2016-Service Tax dated 01.03.2016, the new rates of interest shall be applicable from the day of enactment of Finance Bill, 2016:
S. No. Particulars Rate of Interest Period of Delay
1. Service tax collected from customer / client 24% For the period from due date to actual date of payment
2. Service tax is not collected or Reverse Charge 15%
Mechanism liability
Related Post : Complete Analysis of interest rates for delay in payment of service tax
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- No service tax on sale of under construction flat if sold with land
- No Service Tax if entire Consideration received after issue of occupancy certificate
- No service tax on volume discounts by media owners to advertising agencies
- No Service tax on Services provided to GoDaddy US by Godaddy India
- No Service tax on News service by an independent journalist
- No Service Tax on Services provided by Government to Business entity having turnover upto Rs 10 Lakh
- No Service tax on Maintenance or Repair of Roads
- No Service tax on services relating to agriculture or agricultural produce
- No Service tax on course fees as it is not franchise Service
- No Service Tax on Bank Deposit opened under Pradhan Mantri Jan Dhan Yojana
- No service tax on entrance fee collected by club from its members
- No Service Tax on Food sold by Home Delivery
- One time maintenance charges collected from Buyers not liable for Service tax
- Cenvat Credit on Capital Goods installed in Jammu & Kashmir not available
- If converting stand-alone trees into billets is manufacture than it is not liable for service tax
- Dealers of SIM cards can not take credit of service tax paid by telecom companies
- Time limit to file refund of service tax wrongly paid