Service Tax Returns and Penalties
By Team Legistify / 2017-06-16
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.

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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 to 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 a 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 a quarterly basis by individuals and partnership firms. But, companies, society and trusts need to pay service tax on monthly basis.

How to File Service Tax Returns?

Usually, a service tax assessee needs to file two type of returns - ST-3 Return and ST-3A Return. ST-3 Return is applicable for registered assessee. ST-3A Return is applicable for those who make provisional assessment under r ule 6(4) of the Service Tax Rules, 1994. You need to file ST-3 Return twice in a financial year on half yearly basis. You can file your service tax returns by furnishing the details of each month for which the return is filed. You need to furnish these details separately with Form ST-3. While filing your service tax returns, you can take the help of instructions stated in the application form. Your application form needs to be accompanied by a GAR-7 challan.

If you want to file your service tax returns online, first you need to register with ACES (Automation Central Excise and Service Tax) by visiting website of Central Board of Excise and Custom. Once, you register, the site will send you a user ID and password by using which you can log in to the site of Central Board of Excise and Custom and get access to FORM ST-1 . Then, fill up the online form by putting all required information and make an e-payment by using your chosen bank. You can also revise your service tax returns in order to correct an error or omit something. If you fail to file your returns within 15 days, from the prescribed due date of returns, you need to pay a penalty fee of Rs. 500. But, the penalty fee increases, if service tax returns get delayed beyond that.

Service Tax Penalties :

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.

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Get connected to the Best Lawyers and Chartered Accountants Near You!


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