1. Localizations for India Implementation Guide
  2. Process Flow for Advance Service Tax Payments

Process Flow for Advance Service Tax Payments

The procedure that you follow to make advance service tax payments is similar to the steps that you follow to make and report regular service tax payments, except that you make a service tax payment before it is due and apply the advance payment to outstanding liabilities.

After you determine that you want to make an advance service tax payment, you:

  1. Generate a voucher for the advance service tax amount.

    When you enter the voucher, you specify that the voucher is for an advance service tax payment.

  2. Post and pay the voucher.

  3. Post the payment.

    When you deposit the tax amount, the bank issues a challan number that you will report.

  4. Reclassify the service taxes.

    You run the Service Tax Reclassification AP program (R75I700A) to reclassify service taxes and update tables. You cannot utilize the advance payment until you reclassify service taxes.

  5. Submit to the government a TR-6 form with the challan number for the advance amount.

    You run the Supplementary TR-6 program (R75I705) to generate the TR-6 form.

    Note: You can run the Supplementary TR-6 program from the Batch Versions program or from the Advance Service Tax Payment Details program (P75I760). When you run the Supplementary TR-6 program from the Advance Service Tax Payment Details program, the system runs version ZJDE0002. You should verify that the processing options for version ZJDE0002 are set to process advance service tax payments before you run the Supplementary TR-6 program from the Advance Service Tax Payment Details program.

At the end of the reporting period, you:

  1. Offset liabilities with the advance service tax amount.

    You use the Credit Distribution Services program (P75I013) to apply the advance service tax payment to outstanding liabilities.

  2. If the liabilities for a reporting period are greater than the prepaid amount, generate, post, and pay a voucher for the amount due.

  3. Report the tax payment and challan number for the remaining amount due using the TR-6 form.

    Run the Supplementary TR-6 program (R75I705) to generate the TR-6 form for the amount that you pay at the end of the reporting period.