Service Tax Due Dates and Interest on Late Payment of Service Tax

As per the Service Tax Rules framed by the Govt. of India, Payment of Service Tax should be made at regular intervals. The Service Tax collected by the Service Provider shall be paid to the credit of the Central Govt. on a regular basis before the Due date for Payment of Service Tax and in case of Late Payment of Service Tax – Interest shall also be payable on the Late Payment as prescribed.

Due Date for Payment of Service Tax

As per Rule 6 of the Service Tax Rules 1994, the due date for payment of service tax is separate for Individual/ Proprietary Firms/Partnership Firms and others (Companies, AOP,HUF’s).

For Individual/ Proprietary Firms/Partnership Firms

• If ST paid through Manually -5^th day of the month following the quarter in which the Payment is received.
• If ST paid through Online (ECS) -6^th day of the month following the quarter in which the Payment is received.

For Others(Companies, AOP, HUF’s).

• If ST paid through Manually -5^th day of the Following Month in which the Service Tax is Collected. 
• If ST paid through Online(ECS) -6^th day of the Following Month in which the Service Tax is Collected.

Note: Service Tax Collected for the month/quarter ending March shall be payable by 31st March of the said calendar year.

Particulars	Company, AOP’s, HUF	Individual / Proprietary firm or Partnership firm
Period	Month in which the service is deemed to be provided as per the POT rules	Quarter in which the service is deemed to be provided as per the POT rules
Payment by ECS:	6th day of the following month	6th day of the month following the quarter
Payment by any other mode	5th day of the following month	5th day of the month following the quarter
Month /Quarter ending March	31st March	31st March Compulsory

Interest on Late Payment of Service Tax

The following interest on delayed payment of service tax will be applicable  from Financial Year 2016-17

Conditions	Rate of Interest
Service Tax collected but not deposited to the exchequer	24%
Other Cases	15%

In case of assessee, whose value of taxable services in the proceeding financial year is less than Rs. 60 Lakhs, the rate of interest for late payment of service tax in such cases would be 12%.

[The above changes will come into effect on the day the Finance Bill receives the assent of the President.] 

The following interest on delayed payment of service tax will be applicable  from 1-10-2014 to FY 2015-16.

Period of delay	Rate of simple interest
Upto 6 month	18% p.a.
More than six month and up to 1 year	18% p.a. for the 1st six  months of delay +  24% p.a. for the delay beyond 6 months.
More than a year	18% p.a. for the 1st  six months of delay + 24% p.a. for the period  beyond 6 months but upto 1 year + 30% p.a. for  any delay beyond one year

Due Date for Service Tax Return Filing

Half yearly Return in Form ST-3

Period	Due Date
1st April to 30th September	25th October
1st October to 31st March	25th April

Considerable Points:

• If there is excess payment is made by mistake or due to any other reason, the amount paid in excess may be adjusted against the Service Tax Liability for the coming period or may claim Refund of Service Tax in case Self-Adjustment is not possible
• If any person liable to pay Service Tax has collected an amount in excess of the amount due from the service recipient, the whole of such amount collected in excess shall be payable to the Central Govt.
• 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 clearing of cheque (subject to clearing of the cheque)

For More information visit: ACES

Thank you friends next time we will meet in TDS Due Dates post..........Bye....

--All the above contents only for Public reference and not for any other purpose. Therefore, I can’t take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog--- 

Thanks & Regards

S. Praveen Kumar Reddy.

(source: ACES)