Payment of Service Tax :
As per Rule 6(1) of service tax rules ,1994 ,Service tax on value of taxable services provided or received during the calendar month whichever is earlier should be paid by the 5th of the following month (if manually ) or 6th (if e-payment ) but for March month payment should be made within that month itself latest by 31st.
in case the assesse is an individual or proprietorship firm or Partnership Firm or LLP ,the tax is payable on quarterly basis within 5 days from the end of the quarter (if manually ) or 6th day (if e-payment ) but for last quarter (Jan –March ) payment should be made within that quarter itself latest by 31st March.
With effect from 1.10.2014 E-payment of service tax has been made mandatory. However, the Assistant commissioner or the Deputy Commissioner of Central Excise ,as the case may be ,having jurisdiction ,may for reasons to be recorded in writing ,allow the assessee to deposit the tax by any mode other than internet banking.
In case of an individual and partnership firm including LLP whose aggregate value of taxable services provided from one or more premises is Rs. 50 lakhs or less in the previous financial year ,the service provider shall have the option to pay tax on taxable services provided or agreed to be provided by him up to total of Rs.50 lakhs in the current financial year by the dates specified above with respect to the quarter in which payment is received.
As per section 75 , mandatory interest on delayed payment of service tax is charged as under –
- In case the taxable turnover during a financial year is more than 60 lakhs ,interest @ 18% is charged .
- In case the taxable turnover is equal to or less than 60 lakhs ,interest @ 15 % is charged.
Note – Interest to be calculated for the period from the first day after the due date till the date of payment of any defaulted service tax amount.