Service tax on input service from NRI

This query is : Resolved

BALBIR SINGH (Querist)
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18 December 2010 we are mfg. & having colobration with NRI co. & are paying Royalty & Tech. fees. can service tax applicable or creditable in Cenvat. what it time limit to deposit service tax & late penalty ?
please solve my problem

vinu vasudevan

vinu vasudevan (Expert)
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18 December 2010 Once you touch the the turnover of 9 lakhs, you are liable to register for service tax. And once you register yourself, you are supposed to charge service tax on every single invoice you raise.

The service tax shall be paid to the credit of the Central Government,-
(i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and
(ii) by the 5th day of the month, in any other case, immediately following the calendar month in which the payments are received, towards the value of taxable services:
Provided that where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 6th day of the month if the duty is deposited electronically through internet banking, or, in any other case, the 5th day of the month, as the case may be, immediately following the quarter in which the payments are received, towards the value of taxable services:

For failure to pay the Service Tax, the assessee would be required to pay a minimum penalty of Rs.lOO/- to Rs.200/-, per day as decided by Central Excise Officer. This amount is subject to a ceiling of the amount equivalent to Service Tax not paid. Interest is also payable at the rate of one and a half percent for every month or part of a month by which the payment of tax or any part thereof is delayed