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  • Due Date For Payment of Service Tax & Int

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    Karan Khatri
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    Service providers must pay service tax to the central government by the 5th of the following month or quarter, depending on their business type. Paying online allows an extra day. Late payments face interest charges of 15-24% depending on whether tax was collected but not deposited. Interest is lower at 12% for small businesses with under 60 lakhs in annual taxable services. Excess payments can be adjusted against future tax or refunded.

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    Due Date for Payment of Service Tax & Int

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    Service providers must pay service tax to the central government by the 5th of the following month or quarter, depending on their business type. Paying online allows an extra day. Late payments face interest charges of 15-24% depending on whether tax was collected but not deposited. Interest is lower at 12% for small businesses with under 60 lakhs in annual taxable services. Excess payments can be adjusted against future tax or refunded.

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    12 views3 pages

    Due Date For Payment of Service Tax & Int

    Uploaded by

    Karan Khatri
    Service providers must pay service tax to the central government by the 5th of the following month or quarter, depending on their business type. Paying online allows an extra day. Late payments face interest charges of 15-24% depending on whether tax was collected but not deposited. Interest is lower at 12% for small businesses with under 60 lakhs in annual taxable services. Excess payments can be adjusted against future tax or refunded.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    3/7/2017 DueDateforPaymentofServiceTax&Int.

    onLatePayment

    CHARTEREDCLUB

    DueDateforPaymentofServiceTax&Int.onLatePayment

    AspertheServiceTaxRulesframedbytheGovt.ofIndia,PaymentofServiceTaxshouldbemadeatregularintervals.TheServiceTaxcollectedby
    theServiceProvidershallbepaidtothecreditoftheCentralGovt.onaregularbasisbeforetheDuedateforPaymentofServiceTaxandincaseof
    LatePaymentofServiceTaxInterestshallalsobepayableontheLatePaymentasprescribed.

    IncaseyouarestillnotsureregardingtheRatesofServiceTax,youcanchecktheCurrentRatesinforcebyreferringhereServiceTaxRatesorin
    caseyoustillhaventregisteredyourselfforServiceTax,referourarticleonProcedureforServiceTaxRegistrationOnline

    DueDateforPaymentofServiceTax
    AsperRule6oftheServiceTaxRules1994,theduedateforpaymentofservicetaxisseparateforIndividual/PartnershipFirmsandothers.

    ForIndividual/PartnershipFirms

    TheDueDateforPaymentofServiceTaxincaseofIndividual/PartnershipFirmis5thoftheFollowingQuarterinwhichthePaymentisreceived.
    However, in case the Service Tax Provider opts for online payments, he is given a grace period of 1 day and thus the Due Date for Payment of
    ServiceTaxifthePaymentismadeonlineis6thofthefollowingQuarter.

    ForOthers

    ForallServiceTaxPayers(exceptIndividualandPartnershipFirms),theDueDateforpaymentofServiceTaxis5thoftheFollowingMonthinwhich
    theServiceTaxiscollected.However,ifthepaymentismadeonlinetheduedateforpaymentofservicetaxbecomes6thofthefollowingmonth

    Exception:ServiceTaxCollectedforthemonth/quarterendingMarchshallbepayableby31stMarchofthesaidcalendaryear

    ThePaymentSchedulehasbeensummarisedbelowforyourreadyreference

    Particulars Frequency DueDate

    PaidPhysically PaidOnline

    Individual/Partnership Quarterly 5thoftheFollowingQuarter 6thoftheFollowingQuarter


    Others Monthly 5thoftheFollowingMonth 6thoftheFollowingMonth
    Fromtheaboveitisclearthatitisbeneficialtopaytheamountdueonlineasagraceperiodof1dayisallottedandmoreovertheTaxPayerdoesnot
    have to stand in long queues for depositing the Service Tax. Payment of Service Tax Online is a simple 3 Step Process and you for payment of
    servicetaxonlineyoucanreferthisarticleonPaymentofServiceTaxOnline.

    LatePaymentofServiceTax

    http://www.charteredclub.com/duedateforpaymentofservicetaxlatepaymentpenalty/ 1/3
    3/7/2017 DueDateforPaymentofServiceTax&Int.onLatePayment

    Interest rate for


    CHARTERED Clate
    LUB payment of any Indirect Tax has been rationalised by the Govt in Budget 201617. The interest rate for late payment of any
    IndirectTaxi.e.ServiceTax,Excise,Customsetcwouldnowthesame.

    Theinterestrateforlatepaymentisasfollows:

    ServiceTaxnotcollectedandnotdeposited 15%
    ServiceTaxcollectedbutnotdeposited 24%
    Incaseofassessee,whosevalueoftaxableservicesinthepreceedingfinancialyearislessthanRs.60Lakhs,therateofinterestforlatepayment
    ofservicetaxinsuchcaseswouldbe12%.

    OTHERRELEVANTPOINTS
    1.Ifthereisexcesspaymentismadebymistakeorduetoanyotherreason,theamountpaidinexcessmaybeadjustedagainsttheServiceTax
    LiabilityforthecomingperiodormayclaimRefundofServiceTaxincaseSelfAdjustmentisnotpossible
    2.IfanypersonliabletopayServiceTaxhascollectedanamountinexcessoftheamountduefromtheservicerecipient,thewholeofsuchamount
    collectedinexcessshallbepayabletotheCentralGovt.
    3.If the Payment is deposited by way of a cheque, the date of payment of Service Tax shall be the date of the cheque rather than the date of
    clearingofcheque(subjecttoclearingofthecheque)

    ABOUT THE AUTHOR

    KaranBatra
    KaranisCAbyQualificationwiththeraredistinctionofbeingawardedAllIndiaRank22.Heisalsothefounderofthiswebsiteandloves
    tohelppeoplewiththeirTaxQueries.

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