Service Tax and Central Excise duty for March to be paid by 31st March

R S Sharma

R S Sharma, Advocate & Indirect Tax Consultant

Rule 6 of Service Tax Rules and Rule 8 of Central Excise Rules provide that the service tax on the value of taxable services received during the month of March and that Central Excise duty in case of goods removed during the month of March is required to be paid by the 31st day of March.

Rule 6 of Service Tax Rules prescribes the manner of Payment of service tax as under:

(1) 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 payments are received, towards the value of taxable services:

                Provided that 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 the payments are received, towards the value of taxable services:

                Provided further that notwithstanding the time of receipt of payment towards the value of services, no service tax shall be payable for the part or whole of the value of services, which is attributable to services provided during the period when such services were not taxable:

                Provided also that the service tax on the value of taxable services received during the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.

(2) The assessee shall deposit the service tax liable to be paid by him with the bank designated by the Central Board of Excise and Customs for this purpose in Form TR-6 or in any other manner prescribed by the Central Board of Excise and Customs.

                Provided that the assessee, who has paid service tax of rupees fifty lakh or above in the preceding financial year or has already paid service tax of rupees fifty lakh in the current financial year, shall deposit the service tax liable to be paid by him electronically, through internet banking.

(2A) For the purpose this rule, if the assessee deposits the service tax by cheque, the date of presentation of cheque to the bank designated by the Central Board of Excise and Customs for this purpose shall be deemed to be the date on which service tax has been paid subject to realization of that cheque.

Similarly ,Rule 8 of Central Excise Rules prescribes the manner of payment of Central Excise duty as under:

(1) The duty on the goods removed from the factory or the warehouse during a month shall be paid by the 6th day of the following month, if the duty is paid electronically through internet banking and by the 5th day of the following month, in any other case

                Provided that in case of goods removed during the month of March, the duty shall be paid by the 31st day of March:

                Provided further that where an assessee is availing of the exemption under a notification based on the value of clearances in a financial year, the duty on goods cleared during a calendar month shall be paid by the 16th day of the following month, if the duty is paid electronically through internet banking and by the 15th day of the following month, in any other case except in case of goods removed during the month of March for which the duty shall be paid by the 31st day of March.

                Provided also that an assessee, who has paid duty of fifty lakhs rupees or more, other than the amount of duty paid by utilization of CENVAT credit, in the preceding financial year, shall thereafter, deposit the duty electronically through internet banking

Explanation. – For the purposes of this rule,-

Explanation. – For the purposes of this rule,-

(a) the duty liability shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the specified date;

(b) if the assessee deposits the duty by cheque, the date of presentation of the cheque in the bank designated by the Central Board of Excise and Customs for this purpose shall be deemed to be the date on which the duty has been paid subject to realization of that cheque.

But what happens if the Bank is closed on 31st March and again on 1st April due to a Sunday. In such a situation; you still have an option to pay service tax and central excise duty for the month of March on 2nd April. But How?

Section 10 of General Clauses Act, 1897 provides that where, by any Central Act or Regulation made after the commencement of this Act, any act or proceeding is directed or allowed to be done in any Court or office on a certain day or within a prescribed period, then if the Court or office is closed on that day or the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time if it is done or taken on the next day afterwards on which the court or office is open.

(The Writer is an Advocate & Consultant based in Delhi and is advising several MNCs & Indian Corporates on Indirect Tax Issues . He can be mailed at rssharma@gmail.com)

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20 Comments

  1. narayanan.k said,

    March 13, 2008 at 8:45 am

    WE ARE CONSIGNMENT STOCKIST PLEASE CLARIFY WHETHER WE HAVE TO PAY OUR SERVICE TAX ON 31ST MARCH 2008 BECAUSE OUR SALES WILL BE FINALIZED ON 31ST MARCH IN THAT CASE PAYMENT OF SERVICE TAX ON 31ST IS NOT POSSIBLE PLEASE GUIDE US

  2. DR.M.C.SINDHUR said,

    April 30, 2008 at 1:32 pm

    we are running a private hospital now for bio medical waste management service provider is asking us to pay service tax on the service.he is collecting our hospital generated waste and we are paying him fees by this april 08 he is asking us pay service tax on the swervice please guide us whether this service comes under service tax net please guide sir

    • shashidhar said,

      August 24, 2010 at 3:59 pm

      i am also having same problem, which place/state are you in

    • September 8, 2014 at 4:01 pm

      on which date the liability of service tax effected on bio miedical and notification number

  3. sachin agarwal said,

    August 3, 2008 at 12:51 pm

    A debtor book my performa bill on 29-07-08 and deducted tds on 30-07-08 plz tell me when was i deposit service tax and same which date of deposit service tax monthly or quaterly

  4. Pradeep Saini said,

    September 26, 2008 at 12:40 pm

    Dear Sir,
    Good Afternoon,

    Sir,
    my self is Pradeep Saini
    I am working as Accounts Assistant & I want to know about :-

    1.what’s the excise duty Rate.
    2.what’s excise duty Tax deposit & return Tax form.
    3.what’s Service Tax Deposit Form & Return Form.
    4. what’s the CST Tax Deposit/ Return Form.

    Sir, plz help me.

    Thanking you,

    Yours faithfully,
    Pradeep Saini.

  5. October 28, 2008 at 5:08 pm

    I am Director of a charitable hospital in Bangalore.The hospital has engaged a labour contractor to employ ayahs,nurses,and other paramedical staff.The labour contractor now says that he has to pay service tax and is claiming this amount from the hospital.Is this correct.Has the service tax to be paid by us or the contractor ? Kindly advice urgently.Regards:MVN RAJ (mnahusharaj@msn.com)

  6. dev rajput said,

    January 24, 2009 at 3:27 pm

    2.what’s excise duty Tax deposit & return Tax form.
    3.what’s Service Tax Deposit Form & Return Form.

  7. Biswajit Banerjee said,

    March 26, 2009 at 3:30 pm

    Sir,
    we are availing 30 days grace period and paying excise duty with interest every month. But there is no clear instruction for the month of March. so please clarify us.
    Thanks & Regard,
    Biswajit Banerjee

  8. Sonu Verma said,

    May 26, 2009 at 4:28 pm

    Res. Sir,
    I want to know that we pay the duty of march 1st march to 30th March in 31st March. But what is the deposit date of that duty which is debited in 31st March. Please tell me the answer.

    Sonu verma
    Ph. 09897955551

  9. Sonu Verma said,

    May 27, 2009 at 3:44 pm

    Res. Sir,
    I want to know that we pay the duty of march 1st march to 30th March in 31st March. But what is the deposit date of that duty which is debited in 31st March. Please tell me the answer.

    Sonu verma
    Ph. 09897955551

  10. Hitesh Arora said,

    January 15, 2010 at 12:57 pm

    Plz sent all information about of Excise that how can deposit of Excise payment and about return

  11. jitender said,

    July 5, 2010 at 12:41 pm

    Dear sir,
    Good Noon

    What we do when our excise challan deposited by e-pyment have been done, but excise Head are enterchange, amount total is same.

    pl reply me soon
    Thanikng you

  12. Rajender Kumar said,

    September 6, 2010 at 11:11 am

    Sir,

    If 5th is the holiday then Excise Duty and Service Tax can be deposited on 6th without any interest. if any interest liability arises.

    Please send your answer

  13. Rajender Kumar said,

    September 6, 2010 at 11:13 am

    Sir,

    5th is the holiday in that case Excise Duty & Service Tax can be deposited on 6th without any interest. Please clear

    R.K. Sharma
    Contact No. 9718360607

  14. January 4, 2012 at 2:51 pm

    Happy new year sir
    I have a doubt, the question is ” It is said in the lease agreement that the service tax will be paid by lessee(Bank). The lessee(Bank) has leased with 6 different lessor(individual). The lease amount is Rs. 480000 p.m among lessors. The lessors are not sending the invoice to lessee(bank) exclusive of the service tax. My question is From the point of view of lesee(bank) is there any liabality of lessee(Bank) to register itself to the service tax department and pay the service tax thereon.

  15. CAAjay Kumar said,

    March 28, 2012 at 8:48 pm

    Now from 01/07/2011 the payment of Service Tax is not based on collection but is to be deposited on the very next month when the invoice for service or Advance on service is raised.Except in March it is to be deposited in 31st March itself.

    • Balan said,

      September 5, 2012 at 4:53 pm

      We’re a Common Bio Medical Waste Facilitator in Tamilnadu. Our nature of service is collection, Treatment and disposal of BIo Medical Waste Collected from Govt. / Private Hospitals / Clinics / Labs / Blood Banks. Could you please confirm whether our Service comes under the purview of Service tax as per the Latest Govt. Notification No.: 25/2012 dated 20.06.2012 (w.e.f 01-07-2012). Moreover our services are not listed in the Negative List.

  16. Dr Neil said,

    July 25, 2014 at 3:49 am

    Taxation is definitely part of the solution! We need to get a hold of this Biomedical Waste Management problem.

    Please see my presentation on solutions to this medical waste problem:

    http://www.slideshare.net/Dr_Neil2014/biomedical-waste-management-rules-in-hospitals-2014

  17. Anonymous said,

    May 20, 2016 at 6:55 pm

    We have paid excise duty for the month of march 2016 on 3rd May 2016 with interest but the department issue us showcase notice for payment of Penalty @ 1%


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