Saturday, March 24, 2012

SERVICE TAX PAYMENT DUE DATE FREQUENTLY ASKED QUESTIONS


on Saturday, March 24, 2012


Note: in case of March, the payment should be made by 31st March.

3.1How to pay Service Tax? 

Form G.A.R.7 (previously known as TR6 Challan) should be used to make service tax payments. Payment of service tax may be made at the specified branches of the designated banks. The details of such Banks and branches may be obtained from the nearest Central Excise Office/Service Tax Office. 

Service Tax can also be paid electronically, using e-payment facility.

3.2 What is due date of Service Tax required to be paid? 

1. Payments through Bank :

Category
Frequency
Due Dates
In case of Individuals, proprietary Firms & Partnership Firms Quarterly as mentioned below -

( i ) For Q.E. 30th June

(ii ) For Q.E. 30th Sept.

( iii ) For Q.E. 31St Dec.

( iv ) For Q.E. 31st March



- by 5th July

- by 5th Oct

- by 5th Jan.

- by 31st March
Others (e.g. Companies,
Societies, Trusts etc.)
Monthly By 5th of the month immediately following the month in which payments are received towards the value of taxable services.

However, in case of March, the payment should be made by 31st March.

2. Electronic Payments through Internet :

Category
Frequency
Due Dates
In case of Individuals, Proprietary Firms & Partnership Firms Quarterly as mentioned below -

( i ) For Q.E. 30th June

( ii ) For Q.E. 30th Sept.

( iii ) For Q.E. 31St Dec.

( iv ) For Q.E. 31st March



- by 6th July

- by 6th Oct

- by 6th Jan.

- by 31st March.
Others (e.g. Companies,
Societies, Trusts etc.)
Monthly By 6th of the month immediately following the month in which
payments are received towards the value of taxable services.

 However, in case of March, the payment should be made by 31st March.

Download Service tax payment due Date In pdf
3.3. What is the procedure to be followed for payment of Service Tax if full details are not available to assess the correct service tax liability ? Under what circumstances, provisional assessment is resorted to? 

If an assessee is unable to correctly calulate the actual amount of Service Tax payable for any particular month or quarter, as the case may be, he can make a request in writing to the Asstt. / Dy.Commissioner of Central Excise as provided under sub –rule (4) of Rule 6 of the Service Tax Rules, 1994, giving reasons for seeking payment of Service Tax on provisional assessment basis. On receipt of such request for provisional assessment, the Asstt. / Dy.Commissioner of Central Excise may allow payment of Service Tax on provisional basis on such value of taxable service as may be specified by him in a speaking order issued to that effect. 

3.4. How is the provisional assessment finalized ? 
In case the Service Tax assessee resorts to provisional assessment after following the procedure and furnishes the returns in Form ST-3A along with Form ST-3, it is the responsibility of the Asstt./Deputy Commissioner to complete the assessment after calling for from the assessee the relevant documents or records, as may be considered necessary by him. In terms of provisions to Rule 7 of Central Excise Rules,2002 as applicable to Service Tax, the order finalizing the assessment shall be passed as soon as the relevant information is received. 

3.5. What is the head of account into which the Service Tax amount is to be paid in respect of various services? 

Separate “Head of account” has been specified for each taxable service. This must be mentioned on G.A.R. 7 (previously known as TR-6) challan for proper accounting. (See Appendix-1 of this Booklet). 

3.6. What is GAR-7 challan? Where is it available? 

GAR-7 challan is the document for payment of service tax. GAR-7 challan is available in any stationary shop selling Government forms. The format is also given on web-site www.cbec.gov.in


3.7. Can the Service Tax be deposited in Non-designated banks? 

No. For payment of Service Tax, specific bank has been nominated for every Central Excise/Service Tax Commissionerate. If Service Tax is deposited in a Branch /Bank other than the nominated Bank / Branch, it amounts to non- payment of Service Tax [Rule 6(2) of the STR, 1994]. In any case, a non- designated bank will not accept service tax challans. You may approach the local Service Tax Commissionerate to know the name of the nominated bank for payment of your Tax dues. 

3.8. Whether the payment of Service Tax is to be made for the billed amount or for the amount received? 

a) Service Tax is to be paid on the invoice amount or the billed amount. 

Where invoice is not issued within a period of 14 days then the tax becomes payable on the date of such completion of the provision of the service and on the amount mentioned in the invoice. In any case issue of  invoice is mandatory as per Rule 3 of Point of Taxation Rules 2011. 

b) Further the amount of tax to be paid in a case where the person providing the service receives a payment before 14 days then it will be on the basis of the extent of such payment received by the service provider. For instance wherever any advance by whatever name known is received by the service provider to the provision of Taxable Service that advance will form the basis for calculating the Service Tax liability. 
3.9. Can service tax be paid in advance, where the gross amount has not yet been received? 

Yes. As per Rule 6(1A) of Service Tax Rules, 1994, service tax can be paid in advance to the credit of the central government and adjust the amount so paid against the service tax which he is liable to pay for the subsequent period. The assessee is required to intimate the details of the amount of service tax paid in advance to the jurisdictional superintendent of Central Excise/Service Tax within a period of 15 days of such payment and indicate the details of the advance payment made, and its adjustment, if any in the subsequent return to be filed under section 70 of the Act. 

3.10. Can service tax be paid by cheque? 
Yes, service tax can be deposited by cheque. [Rule 6(2A) of Service Tax  Rules,1994] 

3.11. When paid by cheque, which date will be treated as date of payment? 

The date of presentation of the cheque to the bank designated by the Central Board of Excise & Customs for this purpose shall be deemed to be the date on which service tax has been paid subject to realization of that cheque. 

3.12 When payment is made by a client to an assessee after deducting his Income Tax liability under the Tax deduction at source (TDS) provision, whether the Service Tax liability of the assessee is only towards the amount actually received from that client or tax is to be paid on the amount including the Income Tax deducted at source also? 

Service Tax is to be paid on the gross value of taxable service which is charged by a Service Tax assessee for providing a taxable service. Income tax deducted at source is includible in the charged amount. Therefore, service Tax is payable on the gross amount including the amount of Income Tax deducted at source also. 

3.13 What is the interest rate applicable on delayed payment of Service Tax? 

Every person, liable to pay the service tax in accordance with the provisions of section 68 of the Act or rules made there under, who fails to credit the tax or any part thereof to the account of the Central Government within the period prescribed, shall pay simple interest @18% per annum. Interest is payable For the period from the first day after the due date till the date of payment of any defaulted service Tax amount. [Refer to Section 75 of the Finance Act, 1994] 

3.14. Can interest be waived, and by whom? 

Interest payments are mandatory in nature and the same cannot be waived. 

3.15. What are the penal consequences if the Service Tax is not paid or paid late? 

If a person who is liable to pay Service Tax fails to pay service tax, he shall pay in addition to such tax and interest, a penalty which shall not be less than Rs.100/- for every day during which such failure continues or @1% of such tax per month, whichever is higher. However, the penalty amount payable shall not exceed the amount of Service Tax payable. (Refer to Section 76 of the Finance Act, 1994). 
3.16. What is e-Payment of Central Excise and Service Tax? 
e-Payment is a payment made through which a Taxpayer can remit his tax dues to the Govt. (CBEC) using Internet Banking Service. It is an additional facility being offered by the banks besides conventional procedure. 
3.17. Is E-payment of Service Tax mandatory? 
Yes. E-payment is mandatory for assesses who have paid service tax of Rs.10 lakhs or more including the amount paid by utilization of CENVAT credit, in the preceding financial year.(Refer Rule 6(2) of Service Tax Rules,1994). However, there is no bar for other assessees to pay their tax electronically. In other words, other assessees may also pay their service tax through e-payment, if they choose to do so. 

3.18. Which banks provide the facility of e-payment of Service Tax? 
The following banks provide e-payment facility.

Sl.No.
Name of Bank
Name of Central Excise / Service Tax Commissionerate for which the Bank is authorised to collect Revenue through e-Payment
1.
Allahabad Bank
All Commissionerates
2.
Bank of Baroda
All Commissionerates
3.
Bank of India
All Commissionerates
4.
Bank of Maharashtra
All Commissionerates
5.
Canara Bank
All Commissionerates
6.
Central Bank
All Commissionerates
7.
Corporation Bank
All Commissionerates
8.
Dena Bank
All Commissionerates
9.
HDFC Bank
All Commissionerates at Delhi, Bangalore, Kolkata, Mumbai
10.
ICICI Bank
All Commissionerates at Delhi, Chennai, Hyderabad, Mumbai
11.
IDBI Bank
All Commissionerates
12.
Indian Bank
All Commissionerates
13.
Indian Overseas Bank
All Commissionerates
14.
Oriental Bank of Commerce
All Commissionerates (w.e.f  01.08.2009)
15.
Punjab National Bank
All Commissionerates

16.
State Bank of Bikaner& Jaipur
All Commissionerates
17.
State Bank of Hyderabad
All Commissionerates
18.
State Bank of India
All Commissionerates
19.
State Bank of Indore
All Commissionerates
20.
State Bank of Mysore
All Commissionerates
21.
State Bank of Patiala
All Commissionerates
22.
State Bank of Travancore
All Commissionerates
23.
Syndicate Bank
All Commissionerates
24.
UCO Bank
All Commissionerates
25.
Union Bank of India
All Commissionerates
26.
United Bank of India
All Commissionerates
27.
AXIS Bank
All Commissionerates at Delhi, Bangalore, Hyderabad, Mumbai
28.
Vijaya Bank
All Commissionerates

More banks will be added over a period of time. You may find out the latest position on the web site of Principal Controller of Accounts http//:pccacbec.nic.in or check with the local Central Excise/Service Tax office. 

3.19. How to get Internet banking facility of Bank? 

The customers of Bank can request this facility on prescribed application forms to any bank having internet banking facility. 
3.20. Are there any geographical restrictions on Banks? 

No. Customer can effect payment from anywhere for the Commissionerate in which he is registered with, provided that particular bank is designated and authorized to collect revenue for that Commissionerate. 

3.21. Up to what time in a day the e-Payments can be made? 

e-Payment can be made 24 hours a day using Internet banking service of Bank. Payment made up to 8 pm will be accounted on the same day. However payments effected after 8 pm will only be included in next working day's scroll by the Focal point Branch. So, to ensure timely payment, e- payment should be made latest by 8 p.m. on the due date. 

3.22. Does the Internet banking service give any receipt/confirmation for the e- Payment? 

Yes, on successful payment the Internet banking user gets a Cyber Receipt for the Tax payment, which he can save or print for his record. 

3.23. How does the taxpayer get the regular Challan stamped and receipted by Bank? 

The respective Focal Point Bank on the next working day will send the Challan copies duly receipted and stamped to the taxpayer by courier at the mailing address provided by the taxpayer.
Download Service tax payment due Date In pdf

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  1. Whether the payment of Service Tax is to be made for the invoice amount or receipt basis?

    ReplyDelete
    Replies
    1. 1)in case of individuals and partnership firms (including limited liability partnership) up to a turnover of Rs 50 lakh in a financial year provided the taxable turnover did not exceed this limit in the previous financial year

      then on receipt basis.

      2)in other case invoice basis

      Delete
  2. service provider can make the payment of service tax on receipt of the payment from clients as per entry in books of account or credit of amount in Bank account.?

    ReplyDelete
  3. A principal company not paid service tax to the service provider company,(Transporting & Mining service) since 2006, but now in 2012 the principal company agree to pay service tax to the service provider company, my equation is, can principal company take or eligible for cenvat credit

    ReplyDelete
  4. Dear Sir, Whether service tax applicable for advance payment..

    ReplyDelete
    Replies
    1. Yes ,service tax is applicable on advance payment also

      Delete
  5. The contractor has paid the 100%ST for the service of reverse mechanism instead of 25%. Now pl inform how to account it.
    shall we pay the 75% again and he claim 75% back. or any simple way out pl.

    ReplyDelete
    Replies
    1. First review whether you are liable under reverse charge or not .

      If yes then reimburse only 25 % to contractor and pay 75 % yourself. Further contractor can adjust this excess tax payment against any other contract or can adjust against future payment.

      Delete
    2. sir
      what will be due date for payment of service tax for service provided during mar 2013 for which bills are going to be raised in apr 2013.
      thanks

      Delete
    3. You have to check date of point of taxation .read details here

      http://www.simpletaxindia.net/2013/02/point-of-taxation-rules-service-tax.html

      If you have not received payment and bill has been raised with in 30 days from provision of service ,then point of taxation fall on Bill date ,which is April ,hence no need to deposit tax on 31.03.13 .Your due date is 05.05.2013

      Delete
  6. our is partnership firm. we are registered with service tax dept. we received advance of Rs.10000/- in 1st Quarter of 2012-13 for service to be provided in 4th Q of 2013--14.we issue receipt only for advance in 1st Q of 12-13. we issue bill , when service is provided, in 4th Q of 13-14. my question is: when we have to pay service tax? if we have to pay S.T. before 5.7.12 (i.e for 1st Q of 12-13) than will it be termed as ADVANCE TAX? if by law we have to issue bill within 14/30 days of advance recd than when to reflect the income/sale in p& l a/c i.e in which year whether in f.y. 2012-13 or f.y. 2013-14.I am confused. can you help me out?

    ReplyDelete
    Replies
    1. If your turnover is less than 50 lakh then as per rule 6 Service tax rules ,service tax is payable as per month of receipt of payment (advance or otherwise),so due date in your case is 05.07.2012

      if your turnover is more than 50 lakh then rule 3 of point of taxation is applicable and as per this rule also due date is 05.07.2012.

      It will not be treated as advance tax under service tax as it is paid on due basis.

      However in Balance sheet you will show 10000 as advance .

      bill is to be issued with in 30 days from date of service provided .

      Income tax has its own set of rules, in above case it is very much clear that service is provided in 2013-14 Fy ,so income should be taken in fy 13-14 .

      Delete
    2. Thanks ,
      some more points:

      In above example Rs.10000/- advance is inclusive of Maharashtra vat @ 1.5% (which will be due at the time of providing the service in 13-14). If I issue invoice in 12-13, what will I have to show to sale tax/vat authority in 13-14.How to show vat in 13-14 , issue new invoice showing only vat collection in 13-14? how to prepare sale register? it will be vary difficult to reconcile with vat/I.T/ service tax authority.

      Delete
    3. thank you very much.
      some more point :
      In my above example advance receipt of Rs.10000/- is inclusive of MVAT of 1.5%. when to issue bill for MVAT? because MVAT liability will be created in 4thQof 13-14.

      will it not be very difficult to prepare sale register? it will be very difficult to reconcile with SERVICE TAX/MVAT/I.T. authority.

      I think special advance bill for service tax purpose will have to carved out, two SALE/INCOME REGISTER will have to be prepared for service tax & mavt purpose.

      Delete
    4. what will be the consequences if we don't issue invoice in 12-13 (1st Q when advance recd)& issue invoice at the time of providing service in 4th Q 13-14.

      Delete
    5. As told earlier bill is to be issued with in 30 days form date of service provided ,so no question of consequences.

      Further service tax is to be deposited on advance that is already clear . In future you should issue performa invoice to customer after adding service tax

      Delete
    6. Mvat is not payable on advance, further you may adopt suitable system as most fit to you

      Delete
  7. 31/03/2013 is Sunday, therefore, bank holiday. What is the correct rule to pay service tax if the last date is Sunday or a public holiday ?

    ReplyDelete
    Replies
    1. all agency(banks collecting taxes) bank will open on 31.03.2013 so you should deposit tax on 31.03.2013

      29 & 30 also working
      http://www.simpletaxindia.net/2013/03/soecial-banks-countrs-remains-open-on.html

      Delete
  8. AS A PVT. LTD. COMPANY HAVEING BUSINESS CONSTRUCTION OF RESIDENTIAL COMPLEX, WHETHER SERVICE TAX COLLECTION WILL BE ON 33% ON ADVANCE COLLECTION ON EVERY COLLECTION ?

    ReplyDelete
  9. Sir, i have one doubt regarding payment of service tax.

    If i am liable to pay service tax on reverse charge basis, then when i have to pay the service tax, on the receipt of bill or at the time of payment to the service provider.

    ReplyDelete
  10. I have paid service tax for the nine months together. How to show the same in half yearly return. Kindly advise.

    ReplyDelete
  11. if a person is running a business and he is receiving ten lakhs amount as service tax from his clients which is to be paid by him but he is paying only one lakh and rest amount he is not paying what should be done in that case any one please help me out

    ReplyDelete
  12. my client is a contractor (electricity billing contract) providing business auxiliary service. first, he is paying the service tax and claiming the same from the contractor with the monthly bills. sometimes, he is paying the service tax lately and claiming the same from the contractor lately after showing the challans.
    whether, he is liable to pay any penal interest or not. plz clarify me.

    ReplyDelete
    Replies
    1. Bill must be issued within 30 days from completion of work ,if your client is issuing bill in within prescribed month then he can deposit service tax on of bill issued in a month by 5th of next month/quarter no interest applicable.

      Delete
  13. Dear Experts Please Guide me Briefly about service tax on Security Services Providing Company.Like Tax rates,Tax Calculation etc.

    Email-nk96093@gmail.com

    ReplyDelete
  14. How to find out whether service tax being collected is paid to the Government by the Service provider?
    Is he expected to mention service tax registration number in the Receipt he gives ?
    Please reply both points Thks

    ReplyDelete
    Replies
    1. Govt has provided a list of service on which service tax under reverse charge is directly payable by the service receiver.on all other taxable services service provider is liable to deposit tax

      http://www.simpletaxindia.net/2012/06/new-services-under-reverse-charge-in.html

      Further service provided is liable to provide service tax regd no on invoice if he claims service tax from service receiver.

      Delete
  15. Thanks for prompt reply.
    My service provider IS collecting service tax.However his receipt does NOT indicate registration number.
    Is there any web site which will indicate companies registered for paying service tax?If so ,I can check whether the company providing servos to us is Registered for remitting service tax collected from us.
    Please reply

    ReplyDelete
    Replies
    1. You should ask him to provide his registration number .Normally service tax number of person is PAN 10 digit plus st001.

      you can verify details here
      https://cbec-easiest.gov.in/EST/InputPageForEPaymentServlet

      Delete