Service Tax Payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2010 we are giving the DD of Janseva bank (Shikrapur, Pune) towards the service tax payment to Maharashtra bank (koregaon Bhima, Pune). We are submiting the challan & DD on 5 of the following month to bank. Bank acknowledge the dd & challan on 5 but bank are affix the stamp on 7. as per bank they will give the stamp after clearing the DD.

I want to know whether this is late payment or not? if this is late payment then what we will do?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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03 March 2010 It is not a late payment.

In case of payment by cheque, if the cheque is not dishonoured, the date of tender of the cheque is taken as date of payment.

Since, you are making payment by way of DD, question of dishonour does not arise.

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2010 We are making a payment by DD & dd are not dishonour.
but bank affix the stamp when the dd are clear.
our auditor are taken the date as per the challan & they said this is the late payment. can u clerify.

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Querist : Anonymous

Querist : Anonymous (Querist)

Shyam Lal Naik

Shyam Lal Naik (Expert)
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03 March 2010 The view of the auditor is incorrect.

Sub Rule 2A of Rule 6 of the Service Tax Rules, 1994 is reproduced below for your benefit.

"(2A) For the purpose this rule, if the assessee deposits the service tax by cheque, the date of presentation of cheque to the bank designated by the Central Board of Excise and Customs for this purpose shall be deemed to be the date on which service tax has been paid subject to realization of that cheque."