The question is given as under.
- Services provided on 25.04.2012
- Bill /invoice raised on 30.05.2012
- Payment received on 01.10.2012
- Service provider :Individual
- Started services (business) on 01.04.2012
- Expected turnover for Financial year 2012-13 :20 Lakh
A:05.05.2012(06.05.2012 E payment)
B:05.06.2012(06.06.2012 E payment)
C:05.07.2012(06.07.2012 E payment)
D:05.11.2012(06.11.2012 E payment)
E:05.01.2013(06.01.2013 E payment)
- 30% person selected answer A ,with the reason that "as the bill was raised after 30 days ,so the point taxation shifted to date of provision of services.so correct answer is 05.05.2012,
- 26% person selected Answer B , with simple logic that due date of payment of service tax is linked with date of invoice ,so correct answer is 05.06.2012.
- 28% persons selected Answer C, as they able to note down the point that service provider is an Individual and due date for payment of service tax for Individual /partnership is on quarterly basis , Further they think that point of taxation rule is applicable and as per PoT rules, point of taxation is on the basis of invoice/Service provision date .
- 12% person selected answer D , with the reason that in case of Individual receipt date is to be taken i.e 01.10.2012 ,not the provision date or date of invoice,so due date is 05.11.2012 but they have ignored that service provider is an individual.
- 4 % Person selected the answer E with the logic that due date is on the basis of date of receipt of payment and quarterly due date is applicable in case of individual , so correct answer is 05.01.2013.
PAYMENT OF SERVICE TAX:
(1) The service tax shall be paid to the credit of the Central Government,-(i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and(ii) by the 5th day of the month, in any other case, immediately following the calendar month in which the service is deemed to be provided as per the rules framed in this regard:
Provided that where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 6th day of the month if the duty is deposited electronically through internet banking, or, in any other case, the 5th day of the month, as the case may be, immediately following the quarter in which the service is deemed to be provided as per the rules framed in this regard:
Provided further that the service tax on the service deemed to be provided in the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.
Provided also that in case of individuals and partnership firms whose aggregate value of taxable services provided from one or more premises is fifty lakh rupees or less in the previous financial year, the service provider shall have the option to pay tax on taxable services provided or agreed to be to be provided by him up to a total of rupees fifty lakh in the current financial year, by the dates specified in this sub-rule with respect to the month or quarter, as the case may be, in which payment is received.
- Individual or proprietary firm or partnership firm are required to deposit service tax on quarterly basis ,on 5th day of the the month , Immediately following the quarter in which service is deemed to be provided as per rules framed (rules are provided under point of taxation rules)
- However third proviso provided an option to Individual or proprietary and partnership firms to deposit service tax on the basis of receipt of payment,if turnover of the such person is less than 50 lakh in previous financial year .
- Person can avail the benefit of this proviso and may deposit service tax on receipt basis on taxable service provided or agreed to be provided up to 50 lakh in current year.
- This rules is applicable from 01.04.2012 vide notification 3/2012 dated 17.03.2012
- This Rule is applicable on all type of services provided by Individual or Prop. or partnership firm.
- From Financial year 2012-13 , benefit of payment of service tax on receipt of payment basis is not restricted to Service provider of 8 specified services, and now it can be availed by all type of service provider subject to conditions given above.
For the above question , correct answer is E'' . Answer A,B,D can easily be ruled out as the service provider is an individual ,so payment due date can only be on quarterly basis i.e 5th of next month after the end of quarter , so we can restrict our answer to "C " and Ë"" .
Congratulations to CA Akhil Poddar and Nilesh suchdevs has provided correct answer with necessary details.