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Service Tax in India

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.




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