Understanding Advance Service Tax Payments

Service tax is a central government tax that customers are charged on the services provided to them. Service providers are responsible for issuing invoices and charging service taxes to their customers. The service provider is required to deposit the tax amount to the tax authority after collecting the tax amount from the customer. The service tax payment must be submitted with the TR-6 form to the designated branches. The TR-6 is submitted on a monthly basis along with the service tax payment.

You might decide to pay the service taxes in advance. You might pay the service tax in advance to better utilize CENVAT credits. If you make advance service tax payments, you adjust the amount of service tax due in subsequent periods.