Every person responsible for making payment of nature covered by TDS provisions of Income Tax Act shall be responsible to deduct tax. However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of all assesses other than individual and HUF whose accounts are not subject to Tax Audit Under Section 44AB of the Income tax Act,1961 during the preceding financial year , is required to deduct tax at source.
As now you have registered as service provider under Service Tax Rules 1994 you are required to collect service tax from the service recipient as per the ‘Point of Taxation Rules’ diagrammatically mentioned below:
Payment of Service Tax
Service tax is payable on accrual basis as per point of taxation rule. Where the service provider receives only a part of the total service charges, Service tax shall be paid on proportionately only on such part and not on the entire consideration. The balance service tax will have to be paid on receipt of consideration. Therefore the service tax is payable only on realized value and not on bill value.
Due dates for payment of service tax
Service provider
Monthly/ Quarterly Due dates
Due date for the March and Quarter ending March
Individuals and Firms
5th of the month following the quarter ended June, Sep, Dec
31st March
Others
5th of the following month
31st March
In case of e- payment, due date shall be 6th of the respective month / quarter.
If last date for paying tax is a public holiday, tax may be paid on the next working day.
Tax is paid through GAR – 7 challan.
Big assesses with a service tax liability of Rs.10 lakhs and above should pay tax electronically.
Interest in case of delayed payment of service tax.
Delay in payment of tax attracts interest at the rate of 18 % p.a. (but relief of 3% to assessee having turnover less than of Rs.60 lakhs .
The interest shall be payable for the period by which payment of tax is delayed.
(B) Due Dates for Filing of Service Tax Returns ( S.T 3)
Half-yearly
Due Date
April to September
25th of October
October to March
25th of April
Consequences on failing to comply with the service tax rules
A) Interest / penalty on failure of payment Service Tax
Apr to Jun 15th July
Jul to Sep 15th October
Oct to Dec 15th January
Jan to Mar 31th May
Consequences due to non-compliance of TDS provisions
Interest @ 18% p.a. (15% in case of Gross amount of Services rendered is < Rs.60 Lakhs)
Penalty Rs.100 for every day during which failure continues, or 1% of tax per month, whichever is higher, but shall not exceed 50% of service tax due.
Penalty for delay in filing Service Tax Return
Upto -15 days----------Rs.500
15days - 20days-------Rs.1000
20days - 30days-------Rs.1000+Rs.100 per day of default
From 31st day subject to a maximum amount of Rs 20000.
Apart from the above penal provisions there is a provision for imprisonment up to 7 years for non-payment/ delayed payment of service tax
Service Tax related Services
Filing of Original Returns
Filing of Revised Return.
Representation on behalf of clients with Service Tax Authorities.
Registrations and Renewals.
Service Tax Returns filing process with us
Step 1 : Collect service tax from the Service recipients (customers / tenants etc.)
Step 2 : Send us the list of Invoices/receipts including service tax collected along with the payment challans. (We would be sending the template for providing the information)
Step 3 : We would file the Service Tax Returns and send you the acknowledgement (ST 3).
Services TAX
Overview
Every person responsible for making payment of nature covered by TDS provisions of Income Tax Act shall be responsible to deduct tax. However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of all assesses other than individual and HUF whose accounts are not subject to Tax Audit Under Section 44AB of the Income tax Act,1961 during the preceding financial year , is required to deduct tax at source.
As now you have registered as service provider under Service Tax Rules 1994 you are required to collect service tax from the service recipient as per the ‘Point of Taxation Rules’ diagrammatically mentioned below:
Payment of Service Tax
Delay in payment of tax attracts interest at the rate of 18 % p.a. (but relief of 3% to assessee having turnover less than of Rs.60 lakhs .
The interest shall be payable for the period by which payment of tax is delayed.
(B) Due Dates for Filing of Service Tax Returns ( S.T 3)
Consequences on failing to comply with the service tax rules
A) Interest / penalty on failure of payment Service Tax
Consequences due to non-compliance of TDS provisions
Penalty for delay in filing Service Tax Return
Apart from the above penal provisions there is a provision for imprisonment up to 7 years for non-payment/ delayed payment of service tax
Service Tax related Services
Service Tax Returns filing process with us
Step 1 : Collect service tax from the Service recipients (customers / tenants etc.)
Step 2 : Send us the list of Invoices/receipts including service tax collected along with the payment challans. (We would be sending the template for providing the information)
Step 3 : We would file the Service Tax Returns and send you the acknowledgement (ST 3).
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