The most concerning and complex part of service tax is its understanding of service tax payment and return procedures. E filing has helped a lot many people by saving their time and as compared to manual submission, it is easier.
The central government of India charge service tax on the services that are provided to its citizens. Service providers are accountable for issuing proof of purchase or invoices and they have to charge the correct service tax to their customers. It is obligatory to the service provider that he/she deposits the amount to the tax authorities after collecting the amount from the customers. Apart from the service excise, the payment must be submitted with the TR-6 Challan form to the chosen branches. An extra surcharge known as education cess is also included in the service tax that has to be paid by the customer.
When the registered customers pay the excise and taxable service to the service provider, the credit can be claimed. The tax for a specified period is payable on the value of service received during that period and not on the gross amount charged. A revised bill has to be provided to the customer for the services that he has received. The tax has to be paid on quarterly basis for partnership firm or individual owner. The customer has to pay by 25th day of the month subsequent to the quarter. The rule of other bodies such as companies, the service tax payments done on monthly basis before 25th day of the subsequent month. Delaying in payment may lead to penalties and extra interest which has to bear by the payee.
These legal provisions have to be followed:
· If you lack a billing location that is centralized, you have to obtain the registration from the apposite tax authority for every distinct location or office.
· If services are offered by more than one place, register only the central billing location.
· One application has to be submitted for registration inclusive of all the taxable services, if the customers have been provided with more than one service by a single location.
The service tax returns have to be filed in Form ST-3A or ST-3 on a half yearly basis to the tax authorities. If no service has been offered by the provider during the half-yearly phase, i.e. 6 months, a nil return has to be filed. Remember, you have to file the returns within 25 days of the 6 month closing time along with TR-6 Challan.
How to pay service tax online?
Better known as e-payment, the process is gaining popularity of the masses. The process involves:
1. Log on to the dedicated service-tax e-payment website and enter your 15 digit registration number. Fill in the characters in the verification box. After the online validation, your personal details like name, Commissionerate code, address etc. will be displayed.
2. In the next tab, choose the accounting codes for service tax. After selection, click on the education cess (in table2)
3. Next, choose the bank via which you wish to pay and click "proceed". You will be taken to your bank log in page next.
4. Enter your bank login details. Once you do that you will be led to a page where you have to submit the application and details.
On successful payment, a print acknowledgment with the challan identification number will be generated.
The central government of India charge service tax on the services that are provided to its citizens. Service providers are accountable for issuing proof of purchase or invoices and they have to charge the correct service tax to their customers. It is obligatory to the service provider that he/she deposits the amount to the tax authorities after collecting the amount from the customers. Apart from the service excise, the payment must be submitted with the TR-6 Challan form to the chosen branches. An extra surcharge known as education cess is also included in the service tax that has to be paid by the customer.
When the registered customers pay the excise and taxable service to the service provider, the credit can be claimed. The tax for a specified period is payable on the value of service received during that period and not on the gross amount charged. A revised bill has to be provided to the customer for the services that he has received. The tax has to be paid on quarterly basis for partnership firm or individual owner. The customer has to pay by 25th day of the month subsequent to the quarter. The rule of other bodies such as companies, the service tax payments done on monthly basis before 25th day of the subsequent month. Delaying in payment may lead to penalties and extra interest which has to bear by the payee.
These legal provisions have to be followed:
· If you lack a billing location that is centralized, you have to obtain the registration from the apposite tax authority for every distinct location or office.
· If services are offered by more than one place, register only the central billing location.
· One application has to be submitted for registration inclusive of all the taxable services, if the customers have been provided with more than one service by a single location.
The service tax returns have to be filed in Form ST-3A or ST-3 on a half yearly basis to the tax authorities. If no service has been offered by the provider during the half-yearly phase, i.e. 6 months, a nil return has to be filed. Remember, you have to file the returns within 25 days of the 6 month closing time along with TR-6 Challan.
How to pay service tax online?
Better known as e-payment, the process is gaining popularity of the masses. The process involves:
1. Log on to the dedicated service-tax e-payment website and enter your 15 digit registration number. Fill in the characters in the verification box. After the online validation, your personal details like name, Commissionerate code, address etc. will be displayed.
2. In the next tab, choose the accounting codes for service tax. After selection, click on the education cess (in table2)
3. Next, choose the bank via which you wish to pay and click "proceed". You will be taken to your bank log in page next.
4. Enter your bank login details. Once you do that you will be led to a page where you have to submit the application and details.
On successful payment, a print acknowledgment with the challan identification number will be generated.