PAYMENT OF SERVICE TAX UNDER RCM, Service Tax

[SURYAKANT MITHBAVKAR]

We have obtained car hire service wherein we have to pay service tax under abatement but please advice when our liability is arise.

suppose bill date is 30.11.2015 and we have made payment against the invoice to the party on 05.12.2015

In the above case when we have to pay service tax under RCM .

Posts / Replies

[Ganeshan Kalyani]

Under reverse charge the liability arises on the date of payment to the service provider. in your case it is 05.12.2015. You will have to pay the liability on 06.12.2015.

[MARIAPPAN GOVINDARAJAN]

Rule 6(1) provides that the service tax shall be paid to the credit of the Central Government by 6th day or 5th day immediately following the calendar month in which the service is deemed to be provided as per the rules framed in this regard. According to this rule you are to pay the service tax on 06.01.2016 if you pay it electronically.

[Ganeshan Kalyani]

As per Rule 6 (1) as referred by you which states service tax to be paid immediately following the calendar month in which the service is deemed to be provided would be interpreted to my mind as - invoice is dated 30.11.2015 which means service is provided in the same month, so the liability has raised as per rule in the same month i.e. November and therefore the tax is liable to be paid in the month of December by 5th / 6th. This is my view.