Take an example that an amount of Rs.10000/- payable as Service Tax on 31.12.2013. was paid on 30.06.2016. Now no service tax was payable if it was paid on 31.12.2013. If it was paid on 01.01.2014, the period of delay would have been 1 day. The three slabs under this notification would be as under-

1	Up to six months	01.01.2014 to 30.06.2014
2	More than six months and up to one year	01.07.2014 to 31.12.2014
3	More than one year	01.01.2015 to 30.06.2016

 

As date of effectiveness of this notification was 01.10.2014, the first slab and part of second slab ( up to 30.09.2014) would be covered by then effective notification viz. Notification No. 26/2004-ST, dated 10.09.2004, as amended by Notification No. 14/2011-ST, dated 01.03.2011.

Similarly part of third slab (after 14.05.2016) would be covered by Notification No. 13/2016-ST dated 01.03.2011 which became effective on 14.05.2016 when the Finance Bill, 2016 received the assent of the President of India.

Thus rates of interest would be charged as under-

1	01.01.2014 to 30.09.2014	26/2004 as amended by 14/2011	18%
2	01.10.2014 to 31.12.2014	12/2014 second slab	24%
3	01.01.2015 to 13.05.2016	12/2014 third slab	30%
4	14.05.2016 to 30.06.2016	13/2016	15%

 

Base upon the above methodology, we are presenting here the Service Tax Interest Calculator (STIC) for immediately calculating the interest liability by inserting the Service Tax Amount, Due Date of Payment and Actual Date of Payment.