Service tax returns are to be filed every six months in a financial year. It is important to keep abreast with the due dates as there are different types based on different service providers. There are late fees and penalties for not filing on time.
Service Tax Return Due Date
Service Tax Return is to be filed once every six month period in a financial year.
25th April is service tax return due date.
Service Tax due dates based on type of Service Provider
Even though Service Tax Returns must be filed once every six months, the service taxes themselves must be submitted to the government every month or every quarter, depending on the type of registration made by the taxpayer and the type / number of service/s provided.
- Quarterly Payments:
If the service taxes are paid online through internet banking, etc., the payments will be due on:
- 6th of July.
- 6th of October.
- 6th of January.
- 31st of March.
If the service taxes are paid through any other means, the payments will be due on:
- 5th of July.
- 5th of October.
- 5th of January.
- 31st of March.
The following types of service taxpayers need to pay their service taxes every quarter:
- Individual service providers.
- Proprietorship service providers.
- Partnership service providers.
If the service taxes are paid online through internet banking, etc., the payments will be due on the 6th of every month and the 31st of March.
If the service taxes are paid by any other means, the payments will be due on the 5th of every month and the 31st of March.
The following types of service taxpayers need to pay their service taxes every month:
- Private Limited Company service providers.
- Limited Liability Partnership (LLP) service providers.
- One Person Company service providers.
Penalty for Late Payment of Service Taxes
If the service tax due from the taxpayer to the government is not paid on time, the government levies penalties on the Payment in the following manner:
- If payment is delayed for up to 6 months – 18% penalty.
- If payment is delayed for over 6 months but up to 1 year – 24% penalty.
- If payment is delayed for over 1 year – 30% penalty.
It should be noted that if the total value of taxable services provided by the taxpayer in the financial year is under Rs.60,00,000, the penalty simple interest rate is reduced by 3%.
Late Fees and Penalties for Filing Service Tax Return Late:
If the Service Tax Return has not been filed by the due date for the given 6 - month period, late fees shall be charged to the taxpayer in the following way:
- Rs.500 late fees for applications delayed by up to 15 days from the due date.
- Rs.1,000 late fees for applications delayed by up to 30 days (over 15 days, under 30 days) from the due date.
- Rs.1,000 + Rs.100 late fees for applications delayed for over 30 days.
It should be noted that no taxpayer will be liable to pay over Rs.20,000 in late fees.
In case of errors to be corrected or omissions to be made in the Service Tax Return form, the taxpayer must furnish and submit a Revised Return of Service Tax within a total of 90 days from the date of submission of the original Service Tax Return filing.
Filing Service Tax Return
Those who possess a Service Tax Registration Number are required by law to file their Service Tax Returns on a semi-annual basis.
This is to say that all those who have their tax being assessed as Service Tax payers, and have registered for Service Tax, must file their Service Tax return once every 6 months in a financial year.
Services taxes that are collected by the assessee (Service Provider) for the provision of services are to be deposited with the government on a monthly or quarterly basis, as the case may be. The Service Tax Return, however, is to be filed on a half-yearly basis.
Service Tax Return Form:
When furnishing the return, the Service Provider must duly fill out a particular tax return form for further processing by the government. The tax return form to be used for Service Tax Return is Form ST-3, or Form ST-3A.
Whichever form the assessee is using, the following details must be furnished:
- The total value of taxable services charged or billed for.
- The total value of taxable services realised.
- The total amount of service tax payable / paid.
File Service Tax Return Online
In order to make the best use of online efficiency, the government has made it mandatory for all Service Providers to file their returns online at www.aces.gov.in. Online filing of service tax returns is not only easier and time saving, it’s also mandatory.
Once the taxpayer has registered on the website, he or she will be able to download the ST-3 or ST-3A tax return forms. These forms are formatted in Excel to act as return filing utilities with their own macro commands.
For Taxpayers Who Provide Two or More Taxable Services:
When a Service Provider provides more than one service that the government deems taxable, he or she will be required to furnish the relevant details in the columns provided in the forms. No matter how many taxable services are provided, however, the taxpayer need only file one Service Tax Return for the relevant time period.