Service Tax Return and Deposit

Service Tax Return

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As per Rule 6(1) of Service Tax Rules, the service tax shall be paid to the credit of the Central Government before the following due dates

Particulars Company, AOP’s, HUF Individual / Proprietary firm or Partnership firm
Duration Month in which the service is deemed to be provided as per the POT rules Quarter in which the service is deemed to be provided as per the POT rules
Payment by ECS: 6th day of the following month 6th day of the month following the quarter
Payment by any other mode 5th day of the following month 5th day of the month following the quarter
Month / quarter ending march 31st March 31st March Compulsory

Due Dates For Service Tax Return

Half yearly Return in Form ST-3

Period Due Date
1st April to 30th September 25th October
1st October to 31st March 25th April

Compulsory ECS payment:

Every assessee is required to pay tax electronically. AC or DC of Central Excise may for reasons to be recorded in writing, allow the assessees to deposit the service tax by any mode other than internet banking. (N/N 9/14 w-e-f 1-10-14)

Exception from POT Rules

Individuals and Partnership firms whose aggregate value of taxable services provided from one or more premises is < or = Rs. 50 lakhs in the previous FY: The service provider shall have the option to pay tax in the current financial year on actual receipt basis on value of taxable services provided or agreed to be provided by him up to a total of Rs. 50 lakhs.

[Means payment is to be made with reference to month or quarter in which payment is received and not on the basis of POT rules.]

Can Service Tax be paid in Advance?

As per Rule 6(1A) every person liable to pay service tax, may, on his own volition, pay an amount as service tax 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: In such case the assessee shall,-

(i) intimate the details of the amount of service tax paid in advance, to the jurisdictional Superintendent of Central Excise within a period of 15 days from the date of such payment; and

(ii) 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.

What is the Manner of Payment of service tax?

As per Rule 6(2), the assessee shall deposit the service tax with the bank designated by CBEC, by using GAR-7challan

If the tax is paid by cheque, date of presentation of cheque to the bank shall be deemed to be the date on which service tax has been paid subject to realization of that cheque