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How to apply new Service Tax Interest Rate ??

Service Tax - Started By: - abbas mukhi - Dated:- 19-5-2016 Last Replied Date:- 27-5-2016 - Sir, As the finance bill, 2016 is enacted on 14.05.2016, new rate of interest is also get effected. how new rate of interest will be apply in for earlier transaction ?? Is there any provision in this regard...? - Reply By KASTURI SETHI - The Reply = Sh.Abbas Mukhi Ji, For the past transactions i.e. prior to 13.5.2016 old rates of interest are applicable. - Reply By Rajagopalan Ranganathan - The Reply = Si .....

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be reduced to 15% from the date of enactment. Every body knows that if budget is presented in the last week of February, the expected date of enactment is in first or second week of May. Now supposing if ST was due in Jan, Feb and March and was deposited late without payment of interest, do you think the department has allowed them to wait for reduced rate of interest till the date of enactment ? Pl. re-discuss. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani Ji, Have you watched vid .....

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of finance Bill 2016 then the new rate of interest is payable. If the service tax paid before enactment of Finance Bill 2016 then ratre of interest prevailing on the date of service tax after delay then the rate interest applicable on the date of payment of service tax after delay is applicable. - Reply By RISHIPAL MALIK - The Reply = Sir,With due respects to the views of Shri. Kasturi Sir, my view is that date of payment of in terest is the criterion. If the interest is paid on or after 14.5.20 .....

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fined in such a manner that rate of Interest as prevailing at the time of duty demand is recoverable and not when the tax was due. Normally I have seen (practically yourself have also noticed during your stay with deaprtment) that few assessee's don''t contest and deposit Interest as falling before the amendment and after amendments if their liability arises in 2 different periods, but same is wrong practice & should not be resorted to.All SCN have phrase Interest as applicable a .....

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ical) Virtually you have painted a true picture of the department as well as law. Hence I am convinced. Thanks again, Sir. In this forum when any conclusion is arrived at after analyzing pros. and cons., the querist and visitors of this forum form get a clear view and they are able to go ahead in right direction. - Reply By Ganeshan Kalyani - The Reply = Really well replied by Sri Sanjay Sir and well acknowledged by Sri Kasturi Sir. In fact by giving different views than what the rest of the exp .....

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r, When I learn from you, I am thankful to you, when I learn from Sh.CS Sanjay Malhotra, I am thankful to him, when I learn from Sh.Rangnathan, Sir, I am thankful to him. There is no an iota of hesitation to accept the views of experts, if the same are correct. Final picture be clear. One should not grope in the dark. This is my attitude in real terms.I have no mask on my face. - Reply By CS SANJAY MALHOTRA - The Reply = R/ Sh. Kasturi ji,Am aware of that though sometimes you are aware of issue, .....

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eally it is the best approach. Either be in dark and curse it is or come out of it like a pearl from the shell. Thanks. - Reply By KASTURI SETHI - The Reply = Dear Experts, Although the issue is settled now, yet I post authority (Board's letter) in support of the views of Sh.Rajagopalan Ranganathan, Sir, Sh.Ganeshan Kalyani, Sir, Sh.CS Sanjay Malhotra, Sir (Casting Vote) (I do not include myself as I joined the mainstream later on when casting vote was cast). An expert who posts correct repl .....

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10-7-2014 when rate of interest was increased. - Reply By Ganeshan Kalyani - The Reply = Thanks you Sri Kasturi Sir for submitting the update.Thanks. - Reply By vijay kumar - The Reply = Dear Mr.Abbas,Please refer to the TRU Circular posted above by Mr.Sethi. Accordingly, the rate of interest prevailing under the respective notifications will apply, when the tax due falls under those periods. For example, if a tax became due in Jan, 2013 and paid on 31.5.2016, following rates will apply:From 5.2 .....

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. - Reply By KASTURI SETHI - The Reply = Dear Sir, Pl. read the judgement of Supreme Court on this issue. SUCHITRA COMPONENTS LTD. Versus COMMISSIONER OF C. EX., GUNTUR 2008 (11) S.T.R. 430 (S.C.) - 2007 (1) TMI 4 - SUPREME COURT OF INDIA - Reply By Ganeshan Kalyani - The Reply = Sir the Hon'ble Supreme Court decision is very clear to state that the rate of interest prevailing at the time of payment of tax is applicable. Thanks Sri Kasturi Sir.Sri Vijay Sir I would like to welcome to TMI as .....

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dent, which is 14.5.2016. That being the case, the rate of 15% comes into force only from 14.5.2016 and not from an earlier date. The Supreme Court judgements in the case of Suchitra Components 2007 (1) TMI 4 - SUPREME COURT OF INDIA or Mysore Electricals 2006 (11) TMI 202 - SUPREME COURT OF INDIA cannot be read into herein because those cases pertains to operation of a Circular/37B order, which are different from a Notification issued under the provisions of Finance Act. A Notification has to b .....

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er of Service Tax, Noida Versus M/s Greater Noida Development Authority, Greater Noida Other Citation: 2015 (40) S.T.R. 46 (All.) Levy of service tax on letting out of vacant land in furtherance of business and commerce - w.e.f. 01.07.2010 or w.e.f. 01.06.2007 - Held that:- The findings of the tribunal in case of NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY Versus COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX [2014 (1) TMI 1203 - CESTAT NEW DELHI] Since the introduction of this sub-clause in Expl .....

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ennai. Therefore, the addition to the Explanation (C) with effect from 10.05.2008 is prospective in nature and that addition shall be applicable from the day that was enacted in the statute book. Accordingly, there shall be no liability to levy of interest on the gross value of taxable service relating to the period prior to that date. - Decided in favour of assessee. NOTIFICATION No. 13/2016-Service Tax New Delhi, the 1st March, 2016 G.S.R.___ (E).- In exercise of the powers conferred by sectio .....

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