service tax interest calculation, Service Tax

[Mohideen A]

As per Sec 75 of Finance act 1994 read with Notification no. 13/2016 - Dated 1-3-2016 w.e.f. 14.5.2016, interest at 15% p.a. is levied for other cases (i.e. service tax is not collected from the customers) for non - payment of service tax liability. For instance, there is an unpaid liability for a period exceeding 6 years, is there any max ceiling limit for the interest on such liability or simple interest @ 15% is calculated for the due period which is more than the ST liability.

Thanks in advance.

Posts / Replies

[KASTURI SETHI]

I want to know full facts of the case. Whether SCN invoking extended period has been issued ? If so, whether extended period has been invoked correctly ?

[KASTURI SETHI]

Interest can exceed tax. There is no such cap in Service Tax laws.

[DR.MARIAPPAN GOVINDARAJAN]

There is no other way except to pay the interest in full.