Service tax payment on quarterly basis by One Person Company and HUF

By | March 5, 2016

Finance Bill 2016

Service tax payment on quarterly basis and on receipt basis for One Person Company and Hindu Undivided Family (Applicable w.e.f. 01.04.2016)

As per Rule 6(1) of Service Tax Rules, 1994, service tax is payable on monthly basis. However, as per proviso to said rule, where assessee is an individual, proprietary firms or partnership firms, service tax is payable on quarterly basis.

Now, this proviso is being amended to extend the benefit of quarterly payment to One Person Company (OPC) and Hindu Undivided Family (HUF).

Further, third proviso to said rule provides the benefit of payment of service tax on receipt basis (i.e. instead of Point of Taxation, service tax is payable on realization basis) for individual and partnership firms, whose aggregate value of taxable services provided from one or more premises is fifty lacs rupees or less in previous financial year. The same benefit is being extended to OPC and HUF.

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