Multiple choice

Service tax is to be deposited by banks within

  1. 5 days of close of the month

  2. 7 days of close of the month

  3. 5 days of close of the month in case of electronic deposit and 6 days in case of manual deposit

  4. 6 days of close of the month in case of electronic deposit and 5 days in case of manual deposit
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The due date for payment of service tax is 6th day of the month following the relevant month/quarter, if electronically paid and in other cases, 5th day of the month following the relevant month/quarter. It is provided under section 75 of the Finance Act, 1994 that in case of delayed payments (after due date), the assessee is required to pay simple interest at the rate prescribed.

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