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.
|
6.1 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)
6.2 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)
6.3 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)
6.4
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)
6.5 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.)
6.6 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.
6.7 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)
6.8 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)
6.9 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).
6.10 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)
6.11 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.)
Source:
http://www.servicetax.gov.in/st-proc-home.htm
