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PRASAL…. Easy Tax
Initiative of R.S.
Service Tax Compliance:
Applying For Service Tax Registration:
• Within 30 days from the date on which provision of taxable service exceeds
the limit of Rs. 9 Lacs.
Collection of service Tax :
• The immediate following date from the date on which the value of taxable
services exceeds the exemption limit of Rs. 10 Lacs.
Rate of Service Tax:
Period Service Tax EC SHEC Net Rate
Till March, 2015 12% 2% 1% 12.36%
April, 2015 Onwards* 14% - - 14%
*as proposed in finance bill, while presenting Union Budget 2015-16. Notification of applicability is still awaiting.
Payment of Service Tax:
Value Realized Due Date
March 31st
March
Other months 6th
of succeeding month
Interest for Delayed Payment:
Rate of interest 18% P.A.
Period of Interest Number of days Between Actual Date of
payment and Due Date
Half-yearly Return:
April to September 25th
of October
October to March 25th
of April

2. 2 | P a g e
PRASAL…. Easy Tax
Initiative of R.S.
Late fees on delay filling of Return:
Delay in Days Late Fees Payable
Up to 15 Days Rs. 500
16 to 30 Days Rs.1000
More than 30 Days Rs 1,000/+ Rs 100 for each day of further
delay
Late fees will be subject to maximum Rs. 20,000.
Revision of Return:
• ST-3 form can be revised and submitted again within 90 days from the date
of filling original return.
Cenvat Credit:
• Cenvat credit can be taken on input services which facilitates in providing
taxable services.
• Service provider can not avail cenvat credit of inputs/input services after
expiry of six* months from the date of issue of invoice.
• Service provider has to make payment of gross value of invoices within 3
month, if such invoices have been considered for Cenvat Credit, if payment
for such invoices not made within prescribed limit then cenvat credit
already taken should be reversed by paying ”amount” equal to Cenvat
Credit availed on such Input Services. If later date, payment is made then
cenvat credit can be taken for the amount equal to cenvat credit revered
earlier.
*The word “Six” shall be substituted by “twelve” as proposed in Union Budget 2015-16.

3. 3 | P a g e
PRASAL…. Easy Tax
Initiative of R.S.
Accounting/Journal Entries:
• When Services are received:
Expenses A/c Dr. Expenses amount
Cenvat Credit Dr. Service tax amount
To Party A/c Gross Invoice value
(Being services expense recognized)
• When Services are provided:
Party A/c Dr. Gross value
Revenue A/c Income Amount
Service Tax payable A/c Service tax collected amount
(Being Income recognized)
• At the time of payment of Service Tax:
Service Tax Payable A/c Dr. Total S.T. collected amt. during the month
To Cenvat Credit A/c Cenvat credit amount applicable,
To Bank A/c. if cenvat is not sufficient to make
payment.
(Being service tax liability discharged by
utilizing cenvat credit available and balance
through bank)
Note:
1. Balance Cenvat credit shall be treated as asset.
2. Service tax payble shall be shown under liability.
The above entry may be presented in different manner as per the convenience of the entity,
but the ultimate effect shall remain same.