Note (September 2026): Service tax was abolished on 1 July 2017, when India replaced it and several other indirect taxes with the Goods and Services Tax (GST). This article is kept for reference only; for any service-tax dues from before July 2017, speak to a tax professional.
What does service tax mean?
Service tax in India is a compulsory tax that is imposed by the Union Government of India for the services it provides and the services that are agreed to be delivered. Except the ones that come under the category of negative list taking into consideration the Place of Provision of Service Rules, 2012 and obtained in accordance to the Point of Taxation Rules, 2011 from any person subject to payment of the service tax.
Procedure for Payment of Service Tax: Online & Physical
The Central Government of India has been making constant efforts in order to provide its tax payers a rush free ways to make the tax payment. There are basically two modes of tax payment in India. They are classified as: physical payment and online payment.
1) Different modes of service tax payment:
The physical payment needs the payee to go to the government office in person, stand in long queues and then make the tax payment after long hours of waiting. Hence this mode is tedious and also involves large amount of time loss along with physical tiredness. Thus, yet another mode of payment comes into role and is termed as online payment.
Online payment is the new technical and a modern way of payment that involves the use of computer networks over the internet and a system of digitally stored data to make the payment of tax electronically. It reduces your efforts and prevents wastage of time.
2) Process of paying service tax online:
- Every person liable to service tax payment must first and foremost get himself registered by filling an application with the Central excise office 30 days prior to the beginning of tax payment activity.
- After registration you will be referred as an “assessee”. Now for making a tax payment online in India, which is also termed as e-payment, first of all you need to have an account affiliated with net banking facility in any of the authorized bank as mentioned under the list issued by the Government.
- If you have already got an account in any of these banks then, the assessee has to simply log in to the web portal of the Central Board of Excise and Customs (Click Here) and then enter the 15 digit service tax assessee code that is issued by the commission of jurisdiction.
- Once done, you will need to enter the captcha code that appears on the screen so as to verify your personal details. After the identification and verification of the identity of the assessee by its code you will be allowed to make further processing.
- The process of identity verification is then followed by the selection of bank for the e-payment. The payee must select his respective bank from the drop down list of banks presented on the website. You can now make the tax payment from your account.
- The tax payer will receive a challan Identification Number after the payment is made as a valid and legal proof that he has successfully paid his service tax.
In the above mentioned process the assessee might also be asked to select his stream of work and education class so you must select it from the list mentioned by the web portal.
3) Things to be kept in mind while paying the service tax online:
Since the online mode of payment is an internet based process, hence, it has no time limits involved with it unlike the physical mode of payment which allows the payment only within limited official hours. However, the assessee must remind himself to pay the service tax on monthly basis.
This payment is generally carried out on 5th of every month except for the month of March when it is mandatory to pay the service tax for the month of March by the 31st of March itself. Also the partnership firms and proprietary concerns are given the lease to pay the service on the quarterly basis and the payment for the last quarter, that is, for the months from January to march, are to be made by 31st march itself.
Thus it is can be conferred that the e-payment option has emerged out to be highly effective in providing a safe and secure payment gateways to the tax payers and assuring them a hassle free way to assist their Government through their tax payment. 🙂
