2.1 The provision related to payment of service tax are contained in section 68 of the Chapter V of the Finance Act, 1994 and rule 6 of the Service Tax Rules, 1994. The salient features are as under.

2.2          In terms of rule 6 of the Service Tax Rules, 1994, service tax liability for a particular month or quarter is to be discharged on the payments received towards the value of taxable service received in that month or quarter, as the case may be. The service tax is required to be paid on monthly basis, by all service taxpayers, other than individuals and proprietary/partnership concerns. The individuals and proprietary or partnership concerns are required to pay service tax on quarterly basis. The service tax is to be deposited by the 5^th of month following the month or quarter for which service tax is paid. Service tax is to be deposited in the designated banks. For depositing the service tax, the duty paying challan should be filled complete in all respect.

2.3        E-payment of service tax: The service tax can be paid electronically also. For this purpose, the service taxpayer needs to have an account in any branch of the designated banks. For availing facility of e-payment, the service taxpayer will have to obtain a user-id and password from the bank in which he has the account. The procedure of e-payment is that the service taxpayer would log on to the web-site of the bank with his user-id and password.  He will then choose the option of payment of service tax. On choosing this option, the service taxpayer will be guided to e-payment portal wherein he would be filling the challan for payment of service tax and would authorize payment of service tax by way of debit to his account. On submission, copy of acknowledgement and challans would be generated for the records of service taxpayer.