Interest on amount collected in excess [Section 73B] :
(1) Cases where interest is to be levied: Where an amount has been collected in excess of the tax assessed/determined and paid for any taxable service under this Chapter/rules made thereunder from the recipient of such service.
(2) Who is liable to pay interest and on what amount: Such person who is liable to pay such amount as determined under sub-section (4) of section 73A above, shall, in addition to the amount, be liable to pay interest.
(3) Rate of interest: The interest could be ranging between 10% to 24% p.a. At present, the rate of interest @ 18% p.a has been notified vide Notification No. 15/2011 dated 01.03.2011.
(4) Period for which interest would be charged: 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.
(5) No interest payable subject to certain conditions: No interest shall be payable where the amount becomes payable consequent to issue of an order, instruction or direction by the Board under section 37B, subject to fulfillment of the following conditions:
(i) the full amount is paid voluntarily within 45 days from the date of issue of such order, instruction or direction; and
(ii) no right to appeal against such payment at any subsequent stage is reserved.
In other cases, the interest shall be payable on the whole amount, including the amount already paid.
(6) Change in amount of interest: Where the amount determined by the Central Excise Officer under section 73A 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.
(7) Concession of 3% for specified assesses: In the case of a service provider, whose value of taxable service provided in a financial year does not exceed Rs 60 lakh during any of the financial years of the notice issued under section 73A(3) or during the preceding financial year, as the case may be, such rate of interest shall be reduced by 3% per annum.
Hence, a concessional rate of interest of 15% per annum is available to the tax payers whose turnover during any of the years covered in the notice issued under section 73A(3) or the preceding financial year is upto Rs 60 lakh.