Section 68 of Finance Act, 1994 – Payment of Service Tax

Introduction

Section 68 provides for payment of service tax to the central government. Section 68 only provides that every person providing taxable service to any person shall pay service tax at the rate specified in section 66B. The manner of payment has been prescribed in Rule 6 of Service Tax Rules, 1994. Some of the basic points on section 68 read with Rule 6 of Service Tax Rules, 1994 are as follows:
 

• Due date for payment: The dues date for depositing service tax depends on upon the form of business you take; you may refer the due dates from the details.

• Cash basis: The individuals, HUF, partnership and One person Company up to the turnover of 50 Lakh, can pay service tax on the cash basis.

• Rule 6: Rule 6 of Service Tax rules, 1994 holds the important concepts, and it is directly related to section 68 and some other sections of this chapter.

• Payment of Service Tax: Any person can make the payment of Service tax by using GAR 7 challan.

Conclusion

The service tax is one of the most complicated taxes and can even confuse the master of this profession. Hence, it is always recommended to consult the expert before reaching any judgment.

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