When and How to pay Service Tax?

If the assessee is an individual or a proprietary or partnership firm, the Service tax is to be paid on quarterly basis.  The payment is to be made by the 25th day of the month following the quarter.  For example, Service Tax for the quarter ending 30th June is to be paid by 25th July.In respect of other categories, the tax is payable on monthly basis and is to be paid by 25th day of the succeeding month.

 

The Service Tax for a particular period is payable on the value of taxable service received in that period and not on the gross amount billed to the client.


  • The Service Tax amount is required to be paid in Form TR-6 Challan (yellow in colour) in the specified branches of designated banks. The list of such Banks and Branches is available in every Commissionerate of Central Excise.
  • Specific Bank has been nominated for every Central Excise Commissionerate. If Service Tax amount is deposited in a branch of Bank other than nominated Bank, it amounts to non-payment of Service Tax.
  • The date of deposit of cheque is the date of payment of Service Tax.    The Service Tax Rules as amended provide that it would suffice if the cheque is presented to the bank by the 25th of the month.    However, if the cheque bounces, it would mean as if the tax has not been paid and the necessary penal consequences would follow.
  • Different heads of accounts have been specified for different taxable service by the Govt. under which payment has to be made.  While making the payment of service tax to the credit of Central Govt., head of account should be properly indicated under major and minor heads and subheads to avoid misclassification.
  • In terms of Section 83 of Finance Act, 1994 read with Sec.12A of Central Excise Act, 1944 it is compulsory to separately indicate the amount of Service tax charged in the Bills/Invoices raised on clients. It is also advisable for the service providers to separately bill the amount of Service tax in the invoice/bill on the basis of taxable value of service rendered, especially so if he requires to avail the input credit scheme.
  • In accordance with the provisions of Section 68 or the rules made thereunder, who fails to pay such tax shall pay in addition to paying such tax, and interest on that tax in accordance with the provisions of Section 75, a penalty which shall not be less than one hundred rupees but which may extend to two hundred rupees for every day during which such failure continues, so, however, that the penalty under this clause shall not exceed the amount of service tax that he failed to pay.
  • You can also pay it online  http://www.servicetax.gov.in/e-paymnt-st1.htm


It is not mandatory to have a PAN for obtaining registration in Service Tax. However, it is advisable for Service tax assessees to have a PAN No. as Service Tax Code (STC) Number based on PAN allotted by Income tax department has been introduced in Service Tax also.


The main objective of allocating a number is to identify the concerned person where he is located and registered.

152 Comments
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  3. Rushikesh 3 years ago

    My CA told me that it is mandatory to have a PAN number to obtain Service Tax Number, while you mentioned in your post that it is not mandatory. I am confused. Can you through some light on that?

    One more question, does Assessee code mean ‘Service Tax Number’ or something else?

    Thanks in advance!

  4. Rushikesh 3 years ago

    As per the FAQ published by Service Tax official website, having PAN number is mandatory. Please refer to page#12, question 2.11 on http://www.servicetax.gov.in/faq-29sept11.pdf. Hope this helps!

  5. madhavan 3 years ago

    excellent
    thank you sir.

  6. Swami prabhu 3 years ago

    Out dated

  7. prasad 3 years ago

    dear team, am working as accoutant but i dont how to calculate the service tax and when to be deposit , if possible mail me the details along with the sample of the problem.

  8. shailaja.p 3 years ago

    SERVICE TAX PAYMENT DETAILS

    • arthi 3 years ago

      Service tax Payment due date for an Individuals/Proprietary Concerns/ Partnership Firm is Quarterly once i.e 5th of the month immediately following the respective quarter.
      Any category other then the one mentioned above have to make the ST payment Monthly once i.e 5th of the following month.
      Payment can be made though online or by cheque using G.A.R.-7 challan.

  9. shailaja.p 3 years ago

    we have completed the assement and every thing and we are left only to pay and we are in a question to reach which website and next process.

  10. S S Kaimal 3 years ago

    You have given the wrong dates of payment f service tax. It is, in the case of corporate assessees, the 5th of the month immediately following the month whose service tax you are paying, except for the month of March, for which the due date is March 31 and in case of non corporate assessees it is the 5th of the month following the quarter for which service tax is being paid except for the quarter ending March, for which the due date is March 31

  11. kaju 3 years ago

    i have gross receipts rs. 10 lacs in f.y 2012-13, tell me when i liable to pay service tax that year or next year.

  12. HARI PRASAD.j 3 years ago

    Dear Dhanushya,
    Do you have any circular saying that payment of service tax can be paid on 25 th date? because as i know payment due date is 5th for quarterly payments.

  13. PRAJWAL ENTERPRISES 3 years ago

    service tax for the month of feb-2014

  14. haw do tec servicetax payment i have no expiriyance pls gaide.

  15. melissa 3 years ago

    Great post and contains more useful information. Good to read this article. Thanks for sharing this article.

  16. Agy 3 years ago

    I registered my firm and for service tax 2 months ago.
    I have not yet started earning. None Transactions are made in my account.
    Am i liable to pay service tax??
    What are the rules and regulations for the same??
    Please revert

  17. Web Designing Chennai 3 years ago

    Nice Info… Thanks for the article.

    it seems this article wrote 2013. is there any changes in services tax this year?

  18. Rajesh 2 years ago

    When can one pay service tax? After reviving payment from party or before?

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