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.

I’m a tax expert with over 10 years of professional experience. I’ve gained practical insights on GST and other Taxes during my tenture as a Tax expert and GST Trainer in Reach Accountant.

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