Revision in Rate of Interest under Section 30(1), 30(2), 30(3) of MVAT Act, 2002
As per the circular dated 20/11/2015, the rates of interest under Section 30(1)/(2)/(3) of the MVAT Act, 2002 have been revised.
The new rates will be applicable from 01/12/2015. Earlier it was 1.25% p.m.
In simple words the notification can be interpreted as follows:
Upto 30/11/2015- Rate of interest is 1.25% irrespective of when the liability arises
For the 1st Month( Say December 2015): 1.25% per month
For the 2nd and 3rd Month (Say Jan and Feb 2015): 1.5% per month
From 4th Month of Delay (Say March): 2% per month upto the date of payment