In case of delay in payment of service tax, i.e. service tax is paid after due date; the assessee i.e. the tax-payer is required to pay interest at rate of 13% per annum. This rate is applicable vide Notification No. 26/2004 dated 10.09.2004 w.e.f 1st September, 2004.
Table of rates of interest payable on delayed payment of service tax during relevant period before 1-9-2004 is given below
| Sr.No. | Period | Rate of Interest |
| 1. | 1-7-1994 to 11-05-2001 | 1.5% per month and part thereof |
| 2. | 12-5-2001 to 11-5-2002 | 24% per annum |
| 3. | 12-5-2002 to 10-9-2004 | 15% per annum |
| 4. | From 1-9-2004 | 13% per annum |
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