Service Tax
Valuation of Taxable Service

  If Service Tax Excess Collected/Wrongly Collected

I n addition to tax collected in excess,

Such person shall also be liable to pay interest


Rate of Interest

Rate of Interest is between 10 % to 24 % ( Currently rate of interest is 18% as per Notification No. 15/2011 dated 01.03.2011 .

There is 3% concession if turnover during year of notice or previous financial year is upto 60 lacs

(Hence rate applicable is 15%)


Period of Interest

The interest shall be payable from the first day of the month succeeding the month in which the amount ought to have been paid till the date of payment of such amount.


Change in amount of interest

Where the amount determined by the Central Excise Officer is reduced or increased

by the Commissioner (Appeals), the Appellate Tribunal, or the Court,

the interest payable thereon under this section shall be

 on such reduced or increased amount.

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.