Payment date of service tax under reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2016 Payment date of service tax for an individual is 6th of the following quarter.
Payment date of service tax for a company is 6th of the following month.

The company takes the service of car hire from an individual. Under reverse charge mechanism, the company is liable to pay 40% of service tax for car hire. The company is liable to pay service tax for the very service only. What shall be the date of payment of service tax? Shall/Can it be paid in quarterly basis?

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
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29 September 2016 No, Company has to pay Service Tax on monthly basis as service tax payment date as per the act provisions is 6th of next Month for Companies and whether it is in Direct Charge or Reverse Charge, That would not affect the payment date provisions.
Thanks

subhash sharma

subhash sharma (Expert)
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30 September 2016 the date of payment of reverse charge not effected and company are liable to pay service
tax under RCM are 50% not 40% from 01.10.14 on wards please keep in this mind.

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