Due Date for Payment of Service Tax for March for RCM

[Ashish Bansal]

Dear Experts,

Please,let me know whether Rule 7 of POT will be applicable in March month also ?

For example :

Date of availment of service : 21st March 2016

Bill Booking Date : 25th March 2016

Date of Payment : 10th April 2016

Now in above case which date will be due date for payment of service tax ?

Will it be 31st March 2016 or 5th May 2016 ?

Please, reply ASAP.

Regards

Ashish

[Rajagopalan Ranganathan]

As per second proviso to rule 6 of Service Tax rules, 1994, " the service tax on the service deemed to be provided in the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year."

As per rule 2A of Point of Taxation Rules, 2011 “date of payment” shall be the earlier of the dates on which the payment is entered in the books of accounts or is credited to the bank account of the person liable to pay tax.

In your case Bill booking date is 25.3.2016. In view of the above mentioned rule you have to deposit the tax on 31.3.2016.

[Suryanarayana Sathineni]

Dear Friend,

You might be clear about quantifying the ST payment for a particular month which is supposed to be paid before 6th of next month through online. But for the month of March the ST payment has to be made on 31.03.2016.

About point of Taxation though it is not relevant in the present context, already clarified by Shri. Rajagopaln Ji.

Best Regards

[Ganeshan Kalyani]

The provision is clearly stated that the liability for the month of March should be paid on or before 31st March itself. Thanks.

AI Summary

Due date for service tax: payments for services deemed provided in March must be paid by March 31. Due date for payment of service tax on services deemed provided in March is 31 March; Rule 2A of the Point of Taxation Rules defines 'date of payment' as the earlier of entry in books or credit to bank, so where a bill is booked in March the tax must be deposited by 31 March.