How To Pay Service Tax Online

What is Service Tax?
The Economic Times defines Service Tax as “A tax levied by the government on service providers on certain service transactions, but it is actually borne by the customers.” It is categorized under Indirect Tax and came into existence under the Finance Act, 1994.

How to pay it online
Increasingly, the Indian Government has created online payment systems that allow you to make your tax payments online. For Service Tax, the government allows e-payments from certain bank, clickhere to know what banks are authorized.

If you bank with an authorized bank, here are the steps you need to follow to file your service tax online:

Step 1

Click on the payment link

Enter your Service Tax registration number

Step 2

Select the Service Tax option- a drop down menu will appear asking for your name, name of premises, address, Commissionerate Name and Code, Division Name and Code and Range Name and Code.

Step 3

After filing in the details, Select Accounting Codes for Service Tax and choose the one applicable to be from the menu that opens. Select the Education Cess if applicable.

Step 4

Select your Bank and click on “Proceed” This will lead you to your online bank account where you will be instructed to enter details of the amount required to be paid as service tax.

Once the amount is paid, a challan will be generated as proof of payment. You will need to show this challan when you file your Service Tax Returns , which is done on a half yearly basis.