Service Tax Return / Payment – Monthly, Quarterly, Half yearly?

9 Apr

Service Tax Return / Payment – Monthly, Quarterly, Half yearly?

DT. 05.04.2012

Budget 2012 Presented by Finance Minister on 17.03.2012 proposed that the cycles for the payment service tax and filing of return should coincide. In View of the same Following Changes are proposed in Rules Related to periodicity of Service tax Return Filing and Service tax payment.

Filing of Return of Service Tax

It is provided that an assessee whose service tax liability was Rs. 25 lakhs or more in the previous year and in case of a newly registered service provider other than individual or firms, will have to file return “Monthly”.

And in other cases i.e. Individuals and partnership firm or proprietary firms having paid service tax of less than Rs. 25 lakhs in previous year, will have to file return ‘Quarterly’.

Quarterly return Monthly return
  • Individual/Firm/LLP assessee Any amount of tax liability in immediately preceding financial year
  • Assesses other than Individual/Firm/LLP Tax liability less than 25 lakhs in immediately preceding financial year
Assesses other than Individual/Firm/LLP Tax liability more than 25 lakhs in immediately preceding financial year

 

Payment of Service Tax

Rules relating to payment of service tax has been rationalised. At present only Individuals or Firms are allowed to pay the taxes on quarterly basis. Now this relaxation has been given to every small assessee. The same can be understood with the following table:-

S. No. Amount of tax paid in previous year Individual/Firms & New Assessee (Irrespective of constitution) Other than Individual/Firms
1. Upto Rs. 25.00 lacs Quarterly Quarterly
2. More than Rs. 25.00 lacs Quarterly Monthly

 

In an another important change, now every Individual or firm (including LLP) can pay service tax on receipt basis provided their turnover in previous year (FY 2011-12 for 2012-13) towards taxable service was upto Rs. 50.00 lacs.

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