Is it possible that tax collected by 5pm can be deposited by 2pm?-Payment of S-Tax by 31st March for the S-Tax liability for March.

[Mahesh Kapasi, FCA]

I wonder why an absurd provision of service tax collected on March 31 is to be deposited on the same day, is not struck down by Courts of law? How is it possible? Banks close by 2pm or so and normal offices work up to 5.00 or 5.30 or even 6pm. If service tax is received even at 2pm -is it practically possible to deposit it by 2 pm or so into Bank branches where service tax is being deposited.

Also it is not possible for Bank to accept service tax by millions of service tax payers in one day -as almost all business houses are covered by it.

Can Finance Minister you too can deposit service tax before collecting it?

The wonder is that this absurd and illogical is in force since last year!

The wrong reason as I understand is that the tax collections up to end of financial year are collected in the same year. I suggest the government to end its financial year as on February 28, of each year and allow tax payers to make payments by 25^th of next month, as it was the earlier practice. For income tax returns the government salary was accounted for from March -February only .The same way apply this rule for service tax collections too.

Also raise the exemption limit of service tax from 4 Lakhs to Rs. 10 Lakhs at least so that small assesssees are out of purview of service tax.

 Are you listening Honourable Finance Minister?