Service Tax Payment Due Date

By | January 7, 2017
(Last Updated On: January 23, 2017)

Service Tax Payment Due Date

Service Tax Payment Due Date for different kind of Assessee is as follow :-

Service Tax Payment Due Date for Assessee other than individual, proprietary firm or partnership firm or LLP

Monthly  payment of service tax except for March 

The service tax is payable by assessee (other than individual, proprietary firm or partnership firm or LLP) by 5th of the month following the month in which service is deemed to be provided as per rules framed in this regard (by 6th in case of e-payment) except in March [rule 6(1) of Service Tax Rules as amended w.e.f. 1-4-2011]

Service Tax Payment Due Date for March

Service tax on value of taxable services received during month of March  is required to be paid by 31st March [Second Proviso to rule 6(1) as amended w.e.f. 1-4-2011].

Assessee may find it difficult to accurately estimate the amounts he is going to receive from his customers in last two days. Hence, he may pay excess amount; which can be adjusted in subsequent month/quarter. [Rule 6(4B) of Service Tax Rules, as amended w.e.f. 1-4-2012]

Service Tax Payment Due Date for individual or proprietary firm or partnership firm or LLP or HUF or (One Person Company turnover upto Rs  50 Lakh)

Quarterly payment of service tax except for March 

If the assessee is an OPC (One Person Company) with turnover of Rs fifty lakhs or less, individual or proprietary firm or partnership firm or LLP or HUF , the tax is payable on quarterly basis within 5 days at the end of quarter in which service is deemed to be provided as per rules framed in this regard (within 6 days in case of e-payment) except in March. [first proviso to rule 6(1) of Service tax Rules as amended w.e.f. 1-4-2016]. [The words in italics were added w.e.f. 1-4-2016]

Service Tax Payment Due Date for Quarter – March 

Service tax on value of taxable services received during  quarter of March is required to be paid by 31st March [Second Proviso to rule 6(1) as amended w.e.f. 1-4-2011].

Assessee may find it difficult to accurately estimate the amounts he is going to receive from his customers in last two days. Hence, he may pay excess amount; which can be adjusted in subsequent month/quarter. [Rule 6(4B) of Service Tax Rules, as amended w.e.f. 1-4-2012]

[ The words in italics have been inserted w.e.f. 1-4-2016. The facility of quarterly payment is available to OPC only if the turnover is Rs 50 lakhs or less, facility of quarterly payment is available only if its annual turnover is less than Rs fifty lakhs The facility has been extended to HUF w.e.f. 1-4-2016.]

Service Tax Payment Due Date

Due date for payment of service tax on basis of Point of Taxation Rules

Point of Taxation Rules are relevant to determine due date of payment of service tax.

Rule 6(1) of Service Tax Rules (as amended w.e.f. 1-4-2011) states that service tax shall be paid to the credit of Government by 6th of the month/quarter immediately following the month/quarter in which service is deemed to be provided as per rules framed in this regard.

‘Point of Taxation Rules, 2011’ have been issued (which are effective from 1-4-2011) to make provisions in respect of date when a service shall be ‘deemed to be provided’. These rules will be applicable for purposes of rule 6(1) of Service Tax Rules. See under ‘Point of Taxation Rules’.

Service tax payable on accrual basis, except by small assessees 

The provisions in respect of payment of service tax have been drastically changed w.e.f. 1-4-2011. Till 1-4-2011, the provision was that service tax is payable on receipt basis i.e. on receipt of payment of the invoice or bill from customer or receipt of advance, whichever is earlier. Now, w.e.f. 1-4-2011, service tax will be payable on basis of date of billing or receipt of advance (whichever is earlier) and not on receipt basis.

Individuals and firms and OPC with less than Rs. 50 lakhs turnover can pay service tax on cash basis i.e. receipt basis

 Individuals, partnership firms and One Person Company (OPC) including LLP (but not HUF firms) whose total value of taxable services from all premises together is Rs. 50 lakhs or less in the previous financial year can opt to pay service tax on receipt basis instead of accrual basis, upto first 50 lakhs of current financial year [third proviso to rule 6(1) of Service Tax Rules inserted w.e.f. 1-4-2012] [It is optional. They can pay on accrual basis also].

The words ‘one person company’ have been added w.e.f. 1-4-2016. For some unknown reason, this concession has not been extended to HUF.

Due date of Service Tax payment in case of reverse charge 

In case of services covered under reverse charge, service tax is payable by service recipient (partly or fully) under section 68(2) of Finance Act, 1994.

In case of such services, the point of taxation shall be the date on which payment is made to service provider, if the payment for such service is made within three months from date of invoice [This period was six months upto 1-10-2014].

If the payment for such service is not made within three months from date of invoice, the point of taxation will be the date immediately following the period of three months – first proviso to rule 7 of POT Rules as amended w.e.f. 1-10-2014.

As per rule 10 of Point of Taxation Rules (as inserted w.e.f. 1-10-2014), in case of invoices of date prior to 1-10-2014, the provision of earlier rule 7 will apply i.e. six month period will be allowed. If payment is not made within six months, service tax with interest will become payable – explained in para 4.1.4 of MF(DR) letter No. 334/15/2014-TRU dated 10-7-2014

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