What are the tax rates and due dates for Service Tax?

1. Payment of Service Tax

Frequency Due Date
Individuals, proprietary and partnership firms Quarterly 6th of the following quarter
Others Monthly 6th of the following month
For the quarter/month ending March, the due date for payment of service tax shall be March 31.
Where tax is paid in modes other than electronically, the due date for payment of service tax shall be 5th of the following quarter/month respectively.

Interest on delayed payment

W.e.f October 1, 2014, rate of interest is linked to the period of delay.

Period of Delay Rate of interest
Upto 6 months 18% p.a.
From 6 months to 1 year 24% p.a
More than 1 year 30% p.a

The above rate of interest shall be reduced by 3% in case the value of taxable services provided by the services provider in a financial year does not exceed Rs. 60 lacs.

Penalty for failure to pay service tax

Where a person liable to pay service tax fails to pay the same, shall bear penalty upto 10% of service tax liability.

2. Service tax returns

Every person who has been assigned service tax registration number shall file half-yearly service tax returns. Even if there are no transactions or service tax payable is NIL, filing of service tax return is mandatory.

1st April to 30th September 25th of October
1st October to 31st March 25th April

Revision

Where the assessee has filed its service tax return, the same can be revised within 90 days of submission of the original return to correct any mistakes, error or omissions.

Penalty for delay in filing return

Where the service tax return is filed after the due date, penalty shall be charged for late filing based on the period of delay. Period of delay shall be calculated from the due date of filing the return till the return is filed.

Period of delay Late fees
upto 15 days ₹500/-
more than 15 days upto 30 days ₹1,000/-
more than 30 days ₹1,000/- plus ₹ 100/- per day beyond 30 days
Maximum late fee chargeable is ₹ 20,000/-

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CA Ruchi Shah

CA Ruchi Shah

Author is a Practicing Chartered Accountant with a firm hold on Start-up consultation and International Taxation.