Service Tax Payment

[Sharad Sonawane]

A Man power supplier / Security service provider / Contractor  has raised bill on 01.10.2012 for the service provided in the month of Sept-12.  We have not made the payment to the party till 25^th or 30^th of October 2012.  As per rule the service tax should be paid within 30 days from the date of bill or payment which ever is earlier.

 

In such a situation how can the service tax be paid by both the Service Provider and Service recipient.

 

[JAMES PG]

Service provider , not being limited Cos, has to discharge ST  to the extent of 25%  on receipt of Invoiced amount or at the end of the quarter, if the annual turnover is less than Rs 50 lacs. For the service recipient, liability arises on making payment or six months from the date of Invoice whichver is earlier

AI Summary

Service tax liability: provider pays on receipt or quarter-end while recipient pays on payment or earlier invoice deadline. Service tax timing differs for provider and recipient: the provider must remit tax on receipt of invoiced amounts or at the end of the accounting quarter if turnover is below the statutory threshold; the recipient's liability arises on payment or upon expiry of a fixed period from the invoice date, whichever is earlier. The rules can result in overlapping or staggered remittance obligations depending on payment and receipt timing and the provider's turnover position.