Billing and Payment of Service Tax

March 2, 2015

Billing of Service Tax:
Issue of Invoice/Bill by a Service Tax assessee is mandatory as per Rule 4A of the STR, 1994. The same should be issued within 14 days from the date of completion of taxable service or receipt of payment towards the service, whichever is earlier.

The invoice/bill should contain the following information (Rule 4A of the STR, 1994):

  • Serial number.
  • Name, address and registration no. of the service provider.
  • Name and address of the service receiver.
  • Description, classification and value of taxable service being rendered.
  • The amount of Service Tax payable (Service Tax and Education Cess should be shown

Note: If the service provider is a Banking company, the details at Sl.No (i) and (iii) are not necessary

Payment of Service Tax:

Service Tax can be paid through G.A.R.7 (previously known as TR6 Challan) in the specified branches of the designated banks. The details of such Banks and branches may be obtained from the nearest Central Excise Office/Service Tax Office. Service Tax can also be paid electronically, called e-payment facility.

Where an assessee provides multiple services, he can use separate challans for each service. He can also use single challans, but in this case amounts attributable to each category of service along with the concerned accounting code should be mentioned clearly.

E-Payment is a payment mode through which a Taxpayer can remit his tax dues to CBEC using Internet Banking Service. It is an additional facility being offered by the banks besides conventional procedure.

Due date for payment

For individual or a proprietary or partnership firm Quarterly-by the 5th day of the month following each quarter and by the 6th day of the month following each quarter if the duty is deposited electronically through internet banking. For example, Service Tax for the quarter ending 30th of June is to be paid by 5th or 6th of July as the case may be.

Illustration: A practicing Chartered Accountant renders taxable services for which he receives payments for the months of Apr, May and Jun which constitutes a quarter, the service tax so received by him during that quarter shall be paid before 5th of Jul

For all other categories (Company, Society, Trust etc.) – Monthly– by the 5th day of the succeeding month and by the 6th day of the succeeding month if the duty is deposited electronically through internet banking;

Exception: For the month of March or quarter ending March, all assessees have to pay by 31st of March of the Calendar year (Rule 6(1) of the STR, 1994).

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