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GST - Govt notifies fresh tax rates for GTA + renting of motor cab + jobwork of printing of newspapers & journals + composite supply of works contract to Govt agencies + exempts services provided by and to FIFA + services by Fair Price Shop + Crop Insurance Schemes + LLP to be construed as Partnership firm + services of plumbing & house-keeping through e-commerce platforms liable to registrationNITI Aayog To Launch 'Mentor India' CampaignFM reviews macro economic stability of economyMoS, PMO calls for 'Make in India' health moduleI-T - Whether Explanation to Sec 37(1) gets attracted even if there is no specific material to suggest participation of assessee in alleged kickbacks - NO: HCTreading the GST Path XXX What is "cab"?Apex Court rules Triple Talaq is unconstitutionalTrump warns Pakistan against providing shelter to terror groupsITC claim on Railway Receipt in lieu of Tax InvoiceComposite and mixed supply under GST - Golmaal ReturnsHM launches Digital Police Portal; FIRs can now be filed online in 34 States & UTsI-T - Contributions to provident fund not recognized as valid deduction u/s 80C(2)(vi), is deemed as short-deductions u/s 192 and hence taxable as 'Income from other sources' : ITATIndia's exclusive rights to explore polymetallic nodules from seabed extendedCX - Being busy with procedural requirement under GST is no ground to grant adjournment: CESTATChennai Airport Customs seizes gold worth Rs 4.6 Crore; One person arrestedGovt appoints CISF ADG Dharmendra Kumar as DG of Railway Protection ForceGlobal Forum releases compliance ratings for 10 tax jurisdictions (See 'Brief' in 'TII')PM for soil testing by hand-held devices; calls for involving startupsST - Warehouses are specifically covered under term Railways and they need not necessarily belong to railways - no tax liability on construction of warehouse for CWC in railway premises: CESTATTourism earns about Rs 15000 Cr in July monthPM congratulates OPS being sworn as TN Dy CM; to be Finance Minister alsoI-T - Whether even if assessee returns no exempt income in a particular AY, disallowance of certain expenditure incurred to earn such exempt income is warranted u/s 14 rw Rule 8D - NO: HCImport policy of Urad / Moong dal is revised from 'free' to ‘restricted’CX - When Tribunal decides that goods are exempted under notf. 50/2003, it would have direct impact on rate of duty, therefore, appeal would lie before SC: HCI-T - Remuneration paid to Artist for loss of business occasioned by virtue of non-compete agreement, is revenue receipt, if she is allowed to work elsewhere subject to payment of 5% of her earnings: HCPower Minister calls for 3Ds approach - De-carbonisation, decentralisation & digitalisationMAT Report - CBDT notifies New Form 29B with exhaustive AnnexureWhether the Government has allowed Tax payable under reverse charge to be paid through ITC? (See 'TOG Insight' in Taxongo.com)Domestic Airlines carried 657 lakhs pax between Jan to July, 2017 - A growth of 17% in trafficInter-state supply-who is liable to pay IGST?Rosneft, Russian energy giant, wraps up deal to buy 49% stake in Essar OilStreet Lighting Scheme illuminates 50,000 km of roadsI-T - Whether if a conditional grant comes from abroad, a foreign country is to be construed as a person or authority as per Explanation 10 to Section 43(1) - NO: ITAT
 
Interest-ing change in interest of assessee

FEBRUARY 29, 2016

By CA Pratik Shah and CMA Khushbu Trivedi

THE Union Budget 2016 introduced several amendments in Service Tax including changes in interest rates.

At present, interest in case of delayed payment by the assesse is payable as under:

 

 

Period

Rate per annum as per period of delay

w.e.f. 1 October 2014

•  Delay upto 6 months- 18% p.a.

•  Delay for more than 6 months and upto one year- 18% p.a. for the first 6 months of delay plus 24% p.a. for delay beyond 6 months

•  Delay for more than a year- 18% p.a. for the first 6 months of delay plus 24% p.a. for delay beyond 6 months upto 1 year plus 30% p.a. for any delay beyond one year

A reduction of 3% is available in aforesaid rates for assesses with less than INR 60 lacs turnover.

Budget 2016 changes

Now, Vide Notification No. 13/2016-ST dated 1 March 2016, it is provided that the generic rate of interest would be 15% p.a. However, in cases where Service Tax is collected but not deposited to the exchequer, the rate of Interest will be 24% p.a.

Further, it is provided that in case of assessees with less than INR 60 lacs turnover (in the preceding year) they will be liable to pay interest @ 12% p.a.

The aforesaid Notification will come into effect on the day the Finance Bill, 2016 receives the assent of the President.

The reduction in Interest rate from almost 30% p.a. to 15% p.a. is certainly a welcome move by the Government. This rationalised interest rates will certainly bring smile on the faces of the genuine assessees plagued by funds shortage.

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