Due date of Service Tax payment

[Sudhir Kumar]

Sir, Please provide the due date of payment of Service Tax for the period 2002-03 to 2005-06 ? As the department has calculated the interest taking into account the 25th of the succeding month as due date of payment. For ex. for April, 2002 it is 25.05.2002 similarly for May, 2002 it is 25th june, 2002.

[KASTURI SETHI]

Dear Querist,

You have given the wrong example. the date  i.e. 25the of the following month was last date for filing ST-3 return. Go through Rule 6 of Service Tax Rules.

RULE [6. Payment of service tax. — [(1) The service tax shall be paid to the credit of the Central Government, -

(i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and

(ii) by the 5th day of the month, in any other case,

immediately following the calendar month in which the [service is deemed to be provided as per the rules framed in this regard]

[Mika Arrak]

For 2002-03 to 2005-06, the due date depended on the type of assessee:

• Companies: 25th of the following month

• Individuals / Firms: 25th of the month following the quarter

So, the 25th of the succeeding month applies only to companies.

For non-companies, interest should be calculated based on quarterly due dates, not monthly.

AI Summary

Service Tax due date of payment for 200206: Rule 6 prescribes payment by 6th/5th; 25th is ST-3 filing deadline. The discussion addresses the due date for service tax payment for 2002-03 to 2005-06 and competing interpretations. One respondent noted that companies were treated as due on the 25th of the following month while individuals and firms followed quarterly due dates with the 25th of the month following the quarter; interest was being computed on that basis. Another respondent corrected that the 25th referred to the ST-3 return filing deadline, and cited Rule 6 prescribing payment to the credit of the Central Government by the 6th day (electronic) or 5th day (other modes) of the month immediately following the month of service provision.