Service tax

Service Tax amt to be paid 5th of the following month from the date of raising bill. You can't wait upto receive of the payment from the party.

Mr. Salil Chatterjee,

Thank you sir.My friend is having work contract for more than three months and it is continuous work. In the work contract there is no fixed date for submitting Bills. He is permitted to submit running bills hence it is presumed that the point of time of paying tax is on date of receipt of payment and not on the date of raising a running bill. The final date of end of work contract is to be taken point of time of paying taxes on the bills submitted irespective of fact whether bills are paid or not. Kindly clarify on this issue. 

Once again thank

yours 

R.S.K.Singh

Dear Mr Singh, 

In case of Individuals or Proprietary Concerns and Partnership Firm, service tax is to be paid on quarterly basis. The due date for payment of service tax is the 5^th of the month immediately following the respective quarter. For the purpose,  quarters are : April to June, July to September, October to December and January to March. However,  payment for the last quarter i.e. January to March is required to be made by 31^st of March itself.

( Refer Rule 6 (1) of Service Tax Rules, 1994)

Service tax is to be paid on the amount realized / received by the assessee during the relevant period ( i.e. a month or a quarter as the case may be)    

( Refer Rule 6 (1) of Service Tax Rules, 1994)

So, your friend charge the service tax with running bill towards the customer and deposit the amount in time.

Dear Sir,

Thank you very much  sir, you have given very clear and perfect reply.I have also verified the rule. I will get back more on this if I require any more clarification.

With regards

Yours 

R.S.K.Singh

I agree with the views and endorse the opinions of learned Advocate Salil Choudhary with regard to the clarification on the payment of service tax by individual/firm.  Nothing more to add to this.

Dear Sirs,

Thanks for your replies. My friend's case falls under partial Reverse charge, where in service provider liable for 50% and service recipient is liable for 50 % of service tax. in this case his point of tax is 6 months from the date of Invoice where the payment is not made to S.P. or payment basis which ever is earlier. The Service Recipient is insisting on making advance payment of service tax on the Running Bills submitted by S.P. Pls clarify whether my friend should pay tax just on the invoice or avail the option of six months time or on payment basis of bills. His total bills are struck up and he is not having money to remit Service tax in advance. please clarify with rule if any. As per the work contract the price is inclusive of service tax in that event whether still Service Recipient is liable for 50 % as per partial Reverse charge. whether Service Recipient should 50 % of tax in this case or otherwise. Please clarify on this point. 

Yours 

R.S.K.Singh