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Service Tax Payment

gg_ggaurav (CA Job) (55 Points)

04 June 2008

Dear All

can service tax for the different month can be deposited using a single challan?

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12 Replies

Ajay Gumbar (Chartered Accountant) (263 Points)
Replied 04 June 2008

Yes, one can very well pay the challan for multiple months. If through a GAR7 challan, a previous month liability is paid along with current liabilty, then it must be paid along with interest (It may also be paid through same challan). Further if a future month liablity is paid along with current liability, Rule 6(1A) or Rule 6(4A) applies (which relates to self adjustment.

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gg_ggaurav (CA Job) (55 Points)
Replied 04 June 2008

so this means if i need to deposit the service tax for jan-feb march,

i can deposit the same in a single challan

Ajay Gumbar (Chartered Accountant) (263 Points)
Replied 04 June 2008

Yes one can very legitimately do that. Please remember the form of GAR7 never asks for the month for which payment is made through it. With any GAR7 challan you are paying an amount to the treasury to the govt. You can easily decide and allocate the same as per your will. But this allocation must be freezed at the time of filing ST3 return since the details of Challans paid needs to be declared in ST3.

gg_ggaurav (CA Job) (55 Points)
Replied 05 June 2008

I have to pay 17 lakh for last six month oct 250000,nov 1 lakh ,dec nil, jan 9 lakh, feb 80000, balance for March

i have paid these amount using three challans in may 2008 of Rs.10 lakh

5 lakh & 2 lakh.

will this create any problem

Ajay Gumbar (Chartered Accountant) (263 Points)
Replied 05 June 2008

No problem dear .. you can pay it but with interest.

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gg_ggaurav (CA Job) (55 Points)
Replied 05 June 2008

Thanks a lot

(Guest)

Sir, I have few questions to clarify with regard to ST

1. Sir, Payment of S.T. is billing date wise or after collecting the bill amount?

(Its based on bills raised or amount collected on Service rendered)

2. Can we make the payment quarterly or payment monthly is mandatory.

3. I have made payments, quarterly from past two years, but not filed Form ST-3 as on today, will filling now will attract any penalty?

OFFICESELVA (Service) (515 Points)
Replied 08 June 2008

Ans.1: ST can be paid on billed basis or realised basis. ie. you can choose pay service tax on all the bills raised say on January by 5th of February whether you realised the amount from your customers or not.

In realised basis you are liable to pay service only after the amount is collected from your customer.

Ans 2: It depends on the ownership patten of the company. If propritor concern or partnership then liable to pay every quarter. In all other cases monthly.

Ans 3: After checking the ownership as per Ans 2, you can file the return along with late fee of Rs.2000/- for each ST3 return.

shelly (Employee) (115 Points)
Replied 09 June 2008

is service tax to be charged on rental premises if yes since when

Ajay Gumbar (Chartered Accountant) (263 Points)
Replied 09 June 2008

Hi,

In reply to the query of ziabulla, the liabilty of service tax arises only when the collection of output invoice for which service is provided is received.

So there is no need to pay service tax at the time of billing the output service but to pay only on its collection.

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ativ patel (service) (22 Points)
Replied 05 July 2008

what happen when service provider does not charge service tax on taxable service provider?

2) At the time of raising the bill service is not taxable but when consideration received the said service is taxable?

Ajay Gumbar (Chartered Accountant) (263 Points)
Replied 07 July 2008

Hi,

In case service tax is not charged on the invoice from the service receipient, the same does not relax the service provider to pay the tax to the government.

The service provider still needs to pay the tax on the taxable amount of service charged.

2. For service tax the taxable event is provision of service. So if a service is not taxable at the time of its rendering but is at the time of collection (or even billing) it is taxable still no ST shall be levied.

Regards,

Ajay Gumbar