Service Tax Payment Rate Chart & Rules
- Tuesday, April 24, 2012, 7:25
- Service Tax
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1 In case of Individuals or
Proprietary Concerns and Partnership Firm, service tax is to be paid on a
quarterly basis. The due
date for payment of service tax is the 5th of
the month immediately following the respective quarter ( in case of e-payment,
by 6th of the month immediately following the respective quarter).
For this purpose, quarters are: April to June, July to September, October to
December and January to March. However, payment for the last quarter
i.e. January to March is required to be made by 31st of March
itself.
( Refer Rule 6 (1) of Service Tax Rules,
1994)
2 In case of any other
category of service provider other than specified at 6.1 above, service tax is
to be paid on a monthly basis, by the 5th of the following month ( in case of
e-payment, by 6th of the month immediately following the respective
month). However, payment for the month of March is required to be made
by 31st of March itself.
( Refer Rule 6 (1) of Service Tax Rules,
1994)
3 Service tax is to be paid
to the Central Government in respect of service deemed to be provided as per the
rules framed.
( Refer Rule 6 (1) of Service Tax Rules,
1994)
4 The facility of e-payment
of service tax has been introduced with effect from 11.05.2005. From
1st April, 2010 e-payment of service tax has been made mandatory for
the assessees who have paid service tax of Rs.10 Lakhs (cash+ cenvat) and above
during the last financial year or who have
paid service tax of Rs.10 Lakhs (cash + cenvat) and above during the current
financial year. The e-payment shall be made only in designated banks by
6th day of the following month.
(Refer Rule 6 (1) & (2) of Service Tax
Rules, 1994) {List of Banks, authorized to accept e-payment is given in para
12)
5 The assessee is required to
deposit the amount of service tax in the designated banks through GAR-7
challan.
(Refer Rule 6 (2) of Service Tax
Rules, 1994)
( Assessees may contact
jurisdictional office for details of the designated banks.)
6 While depositing the
service tax, the appropriate ‘account head’ pertaining to the particular service
category should be mentioned on the challan. The correct accounting heads have
been given in the table showing the ‘List of Services’ in para 1.3.
7 If the assessee deposits
the amount of tax liable to be paid, by cheque, then the date of presentation of
the cheque to the designated bank would be treated as the date of payment of
service tax.
(Refer Rule 6 (2A) of Service Tax Rules,
1994)
8 Where
an assessee has issued an invoice, or received any payment, against a
service to be provided which is not so provided by him either wholly or
partially for any reason, or where the amount of invoice is renegotiated due to
deficient provision of service, or any terms
contained in a contract the assessee may take credit of such excess service tax
paid by him, if the assessee:-
a) has refunded the payment or part
thereof, so received for the service provided to the person from whom it was
received or
b) has issued a credit note for the
value of the service not so provided to the person to whom such an invoice has
been issued
( Refer Rule 6 (3) of Service Tax Rules,
1994)
9 The assessee can opt for
provisional payment of service tax in case he is not able to correctly estimate
the tax liability. In such a situation he may request in writing to the
jurisdictional Assistant / Deputy Commissioner for the same.
( Refer Rule 6 (4) of Service Tax Rules,
1994).
10 Service tax ( including
interest, penalty, refund) is to be rounded off to the nearest rupee. 50 paise
or more should be rounded off to the next rupee and less than 50 paise should be
ignored.
( Refer Board’s Circular No.53/1/2003 dated
11.03.2003)
11 Any person who has
collected any sum on account of service tax, is under obligation to pay the same
to the Government. He can not retain the sum so collected with him by contending
that service tax is not payable.
( Refer section 73A of the Finance Act,
1994.)
12. Any person providing taxable service to any person shall pay service tax
at the rate specified in Sec.66 in such a manner and within such period as may
be prescribed.(Sec.68 of the Finance Act, 1994)
The table below shows the rate of service tax applicable at the relevant period of time.
|
Sr.No.
|
Period
|
Rate of Service Tax
|
Rate of Education Cess
|
Rate of Secondary & Higher Education Cess
|
| 1. | Till 13.05.2003 |
5%
|
Nil
|
Nil
|
| 2. | 14.05.2003 to 09.09.2004 |
8%
|
Nil
|
Nil
|
| 3. | 10.09.2004 to 17.04.2006 |
10%
|
2% of the S.T.
|
Nil
|
| 4. | 18.04.2006 to 31.05.2007 |
12%
|
2% of the S.T.
|
Nil
|
| 5. | 01.06.2007 to 23.02.2009 |
12%
|
2% of S.T.
|
1% of S.T.
|
| 6. | From 24.02.2009 |
10%
|
2% of S.T.
|
1% of S.T.
|
| 7 | From 01.04.2012 |
12%
|
2% of S.T.
|
1% of S.T.
|
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