Procedure For Payment Of Service Tax

How to pay Service Tax in India?
Posted 1 year ago  | 
Taxation & Duty
Taxation & Duty

2 Answer(s)

Rashi Gahlaut
Advocate

You may pay service tax by G.A.R.7 (previously known as TR6 Challan which was yellow in colour) 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.

Legistify
Advocate

You can pay service tax by using a G.A.R -7. This is a challan available in specified branches of particular banks. You need to fill the challan by putting all required information and submit it at your particular bank. However, you can also pay your service tax online by using the e-payment facility offered by the central Board of Excise and Custom. For E-payment, it is mandatory to have an internet banking account with any of the authorized banks.

Previously service tax was charged on cash basis from all service providers. But, now only individual providers have pay tax on cash basis. Companies have to pay it on accrual basis. They need to deposit tax as soon as they offer services to recipients. Service tax can be paid on quarterly basis by individuals and partnership firms. But, companies, society and trusts need to pay service tax on monthly basis.