Service tax payment

[Rudrayani Shedjale]

Hello

We need to pay service tax from Oct-16 to Feb-17. There is a set off in the month of Feb-17. So is it correct to adjust the set off against our liability since Oct-16 & pay single challan of entire amount?

Please advise.

Thank you.

[Nash Industries I Pvt Ltd]

The tax is payable for the month and therefore the tax liability for Oct to Jan cannot be set off against the credit available in Feb.The credit available can be utilised for the payment of service tax of Feb and if balance available can be carried forward..

You can pay the entire amount in single challan. However, interest is payable.

Regards

S.Ramaswamy

[KASTURI SETHI]

I support the views of Sh.S.Ramaswamy Sir.

[YAGAY andSUN]

Futuristic credits can not be utilised for payment of duty/service tax of the current period.

[Ganeshan Kalyani]

The nexus of the input is absent with the output tax. Thus credit is not eligible. Thanks.

[Rudrayani Shedjale]

okay. thanks a lot sir.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of the experts.

[Rudrayani Shedjale]

if in a single month there is no service tax & krushi kalyan cess payable. only swach bharat cess is payable, shall we pay challan containing swach bharat cess details?

service tax & K.K.cess set off can be adjusted in next month liability?

please advise

[Ganeshan Kalyani]

Yes you can pay Swachh Bharat cess alone in one challan.

[Rudrayani Shedjale]

done the same thing.

thank a lot for the information.

AI Summary

Service tax credits cannot offset past liabilities; monthly payments required. Swachh Bharat cess can be paid separately. A user inquired about paying service tax from October 2016 to February 2017, questioning if a set-off in February could be adjusted against the entire period's liability and paid in a single challan. Responses clarified that tax liability for each month cannot be offset by future credits, which can only be used for February's payment, with any remaining balance carried forward. Interest is applicable for late payments. Additionally, it was confirmed that Swachh Bharat cess can be paid separately if no other taxes are due in a month. The user acknowledged the advice and confirmed following it.