Rates of Service Tax and its calculation

We know that after implementation of GST w.e.f 01.07.2017, service tax no longer exist. However audit and assessment of service tax cases continues even after 01.07.2017 and in case of any demand applicable interest has to be paid.

Interest calculator for delay in payment of service tax is attached which can calculate interest in one shot for different period.

Interest is levied on the assessee when he delays the payment of service tax which is due and payable. The rate of interest u/s 75 of Finance Act 1994 has undergone a lot of changes since 01.07.1994.The summary of rate of interest is as below:

* In the case of a service provider, whose value of taxable services provided in a financial year does not exceed sixty lakh rupees during any of the financial years covered by the notice or during the last preceding financial year, as the case may be, such rate of interest, shall be reduced by three per cent. per annum.] [ Refer Section 75 of Finance Act, 1994]

The summary of rate of service tax applicable for different period is also given below:

Example 1) Mr X (turnover above Rs 60 lacs) has paid the service tax of Rs 1,00,000 due for the month April 2012 (due on 06.05.2012) on 10.04.2018. In such a case he need to pay interest of Rs 1,37,655 for delay of 2165 days. (Service tax collected but not paid)