How to collect payment service tax

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Ashok

Ashok (Querist)
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14 July 2015 kindly explain rules of payment service tax receipt basis and without receipt basis.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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16 July 2015 As per Rule 6 of Service Tax Rules, 1994 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 Point of Taxation Rules.
Where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 6th day of the month if the duty is deposited electronically through internet banking, or, in any other case, the 5th day of the month, as the case may be, immediately following the quarter in which service is deemed to be provided.
The exception is that in case of individuals and partnership firms where value of taxable services in previous year were is less than Rs. 50 lakhs, service tax can be paid on receipt basis (i.e. cash basis) instead of accrual basis.

Ashok

Ashok (Querist)
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17 September 2015 Thanks to CA CS Ram Pavan Sir for resolved my pending query.

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