When is service tax to be paid

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Dear All,

My quest regards to the payment of Service tax reg. GTA.

I understand that the dues are to be paid on / before the 5th of every subsequent month.

Let me say I transport a material (for which I require to pay ST) on the 10th of a month A.

The Bill is raised on the 7th the next month B.

Since I get 30 days credit for payment subsequent month C,

 

Which date / month should be considered for paying service tax dues.

In which month can I take credit of the paid service tax due.

 

Shall greatly appreciate your clarification.

Replies (1)

As per Rule 7 - Point of Taxation Rules, 2011 the point of taxation in respect of the persons required to pay tax as recipients of service (under reverse charge mechanism) shall be the date on which payment is made, Provided that, payment is made within a period of six months of the date of invoice.

In the above case point of taxation will be the date of payment of freight charges to GTA. Tax is to be remitted on 5th (6th if e-payment) of the subsequent month.


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