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 25th or 30th 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.
Clarification on Service Tax Payment Timeline for Non-Limited Companies and Service Recipients Under Rule 25% A query was raised regarding the payment of service tax for a bill issued on October 1, 2012, for services provided in September 2012. The payment had not been made by October 25 or 30, 2012. The rule states that service tax should be paid within 30 days from the bill date or payment, whichever is earlier. The response clarified that the service provider, if not a limited company, must pay 25% of the service tax upon receiving the invoiced amount or by the end of the quarter if the annual turnover is below Rs 50 lakhs. The service recipient's liability arises upon payment or six months from the invoice date, whichever comes first. (AI Summary)
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