(Now Service Tax is replaced with GST on Services)
Payment of Service Tax
Every person, who is the provider of taxable service, is liable to pay
service tax. Incase of any person who is use service of non-resident
service provider then the user of service is liable to pay service tax
instead of service provider.
Any payments received in advance also liable to pay service tax. The
service tax should be deposited in the specified bank through challan
Form GAR-7.
Due date for payment of Service Tax to the A/c of Government can be
summarized as under :-
For Company :- Monthly liability. Deposit tax so collected by 5th of
next month.
For month of march deposit by 31st March.
For other than Company :- Quarterly liability. Deposit by 5th of month
next to the end of quarter. For month of quarter ended 31st March
deposit by 31st March.
Quarter ended on Due Date for payment of Service Tax
30th June 5th July
30th September 5th October
31st December 5th January
31st March 31st March
NOTE :-Due Date of Payment is 6th of month, if the duty is deposited
electronically through internet banking.
Due date for Filing
Service Tax Return
25th April for half year ended October to March and 25th October for
half year April to September
Service Tax Compliance
Service Tax has now become one of the major sources of yielding
revenue to the exchequer. It has been extended to several items with
enhanced rates in recent budgets. It's scope is very much likely to be
widened and rates to be raised further.
The rules and regulations and various procedures laid down under service
Tax are very cumbersome, tedious and best with the problem of
interpretation , disputes and litigation all its provisions have to be
completed with very strictly. Even a minor lathes can land you in soup.
The tax has to be deposited in treasury with in the stipulated period
and various returns are to be filed on prescribed forms with in
specified dates failing which return penal action in called for.