Incremental interest rates for delayed payment of service tax

NOTIFICATION No 12/2014 ST dated 11.07.2014, is going to be a draconian Notification for service providers. The interest for delayed payment of service tax at 18% which is already much above the market rate has been further revised depending on the delay. The revised rates are as under. These rates are applicable from 01.10.2014.

Sl.No.	Period of delay	Rate of simple interest
1.	Up to six months	18 per cent.
2.	More than six months and up to one year	18 per cent for the first six months of delay and 24 per cent for the delay beyond six months.
3.	More than one year	18 per cent for the first six months of delay; 24 per cent for the period beyond six months up to one year and 30 per cent for any delay beyond one year.