If Service Tax Excess Collected/Wrongly Collected
In 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.