International Financial Services Centres Authority (“IFSCA”) vide Circular No. IFSCA-DTFA/1/2025-DTFA[1] dated February 26, 2025 (“Circular”), issued the details regarding interest on late payment of fee by entities undertaking permissible activities in the International Financial Services Centre (“IFSC”). The Circular shall come into effect from March 01, 2025.
Reference is drawn to the IFSCA Circular dated May 17, 2023, as amended on February 06, 2024, which outlined the fee structure for entities undertaking or intending to undertake permissible activities in the IFSC. In line with the provisions outlined in Schedule-II of the circular dated May 17, 2023, entities failing to pay outstanding dues or fees within the specified timeline were required to pay an additional 20% (twenty percent) of the outstanding fee or dues. Further, a 15% (fifteen percent) simple interest per month was applied to the outstanding fee or dues until they were fully paid. The interest was calculated for each full month of delay, including any part of the month.
In line with the same, it is hereby clarified that the 15% (fifteen percent) simple interest per month applies only to the late fee, i.e., the additional 20% (twenty percent) charge on the outstanding fee or dues.
The revised structure implemented through this Circular is as follows:
Event: Failure to pay outstanding dues/ fees (in full or part) to IFSCA within the specified time.
Interest Amount: Simple interest of 0.75% (zero-point seven five percent) per month on the amount of the fee which remains unpaid or short-paid for every month of delay or part thereof.
[1] https://ifsca.gov.in/Viewer?Path=Document%2FLegal%2Fcircular-interest-on-late-payment-of-fee26022025055936.pdf&Title=Interest%20on%20late%20payment%20of%20fee%20by%20entities%20undertaking%20permissible%20activities%20in%20IFSC&Date=26%2F02%2F2025