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Service tax in India

Service Tax is a tax in the provision of services. Get online Service Tax Calculator details here.<br><br>

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Service tax in India

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  1. Service Tax in India Powered by http://www.taxqueries.in/

  2. Contents • Service Tax • Service Tax Rate • Service Tax Liabilities • Service Tax payment • Service Tax Due Date Powered by http://www.taxqueries.in/

  3. Service Tax • Service tax is a tax imposed by Central Government of India on services offered. • An assessee who pays service tax can be either a service receiver or a service provider. • Service Tax is coming under Indirect Taxcategory • Service means a useful result of labour, which is intangible. Thus, service is an addition that can be only felt but cannot be seen. • As per Section 65B(44) of the Finance Act, 1994, Service means an activity carried out by one person for another for consideration.  Powered by http://www.taxqueries.in/

  4. The service tax has been enforced on all services. It is a tax imposed on the transaction of certain services specified by the Central Government under the Finance Act, 1994. • Service Tax is a destination based consumption tax leviable in services provided within the country.  • Unlike profession tax, it is not leviable only when some ‘service‘ is rendered. Powered by http://www.taxqueries.in/

  5. Unlike Income tax, it is not a tax on revenue generated from services but is a tax on the rendition of services.  • It is not like sales tax/ Value Added Tax which is a tax on the sale of goods. Service tax was levied on specified services before 1.07.2012. From 1st July 2012, there is a paradigm shift in the levy of service tax • Service Tax is payable by the individual, who offers the service on receipt of service charges to the Government of India. Powered by http://www.taxqueries.in/

  6. Service tax Liabilities • Where the taxable services are offered by the foreign service providers with no establishment in India, the recipient of that services in India is liable to pay Service Tax. • The Service Tax is paid by the Insurance Company, for the services providing the Insurance Auxiliary Service by an Insurance Agent. • For the taxable services offered by a Goods Transport Agency for transport of goods by road, the person who pays or is liable to pay freight is likely to pay Service Tax, if the consignee or consignor comes under any of the seven categories listed below. Powered by http://www.taxqueries.in/

  7. Liabilities • A factory. • A company. • A corporation. • A Co-operative Society • A Society. • A registered dealer of excisable goods For the taxable services offered by Mutual Fund Distributors about the distribution of Mutual Fund. In such case the Service Tax is to be paid by the Mutual Fund or the Asset Management Company receiving such service. Powered by http://www.taxqueries.in/

  8. Service Tax Rate • In Union Budget 2016 Finance Minister introduced a new Cess called the Krishi Kalyan Cess. This Cess will be applicable from 1/06/2016.  • Krishi Kalyan Cess would be levied on all services(taxable) and will be charged @ 0.5% of the total value of service. • KK Cess would be levied over and above the Service Tax & the Swachh Bharat Cess. • From 1st June 2016 onwards the Service Tax rate in India could be 15% including Krishi Kalyan Cess. • Service Tax Rate = Service Tax@14%+ Swachh Bharat Cess @ 0.5%+ Krishi Kalyan Cess@0.5%= 15%. Powered by http://www.taxqueries.in/

  9. Service Tax Payment • Assessee can make a service tax payment manually using G.A.R.-7 Form. • G.A.R.-7 is a challan available in all specified branches of banks. • The Taxpayer needs to fill the challan with relevant information and submit the challan in nearest branch. • However, Assessee can also have Service tax online payment provision offered by the Central Board of Excise & Custom. • For E-payment of Service Tax, internet banking account in the authorized bank is mandatory. Powered by http://www.taxqueries.in/

  10. Service Tax Due Dates • As per the Service Tax Rules of Govt of India, Online Service Tax Payment should be made at regular intervals. • The Tax received by the Service Provider shall be paid to the credit of the Central Government on a regular basis before the Due date. • In a case of Late Payment of Service Tax, Late Payment Interest shall also be payable as prescribed by Service tax rules • As per Service Tax Rules 1994, Rule 6, the Service Tax Payment due dates are different for Individual, Partnership Firms, and others. Powered by http://www.taxqueries.in/

  11. THANK YOU For more details http://www.taxqueries.in/service-tax/service-tax-in-india/ Powered by http://www.taxqueries.in/

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