What is subject to service tax?
Service tax applies to prescribed taxable services, provided by prescribed taxable persons. With effect from 1 January 2019, service tax also applies to imported taxable services. Service tax is a final tax with no credit mechanism. Therefore any service tax incurred by a business is a final cost.
How is my service taxed?
When revenue is Rs 10lakhs or less – If the total Revenue you earn from freelancing work is Rs 10lakhs or less, Service Tax rules do not apply. You will be exempt from collecting and paying service tax on your services. Here Revenue means your total receipts from your clients.
What is service tax Name any five services that are subject to tax?
Service tax was introduced in the year 1994. As per section 65 of the Finance Act 1994, service tax is imposed on certain services such as AC restaurants, hotels and guest houses etc. As per the new regulation, service tax is also applicable on both individual service providers and companies in India.
What is service for the purpose of service tax?
Service Tax was earlier levied on a specified list of services, but in the 2012 budget, its scope was increased. It is charged to the individual service providers on cash basis, and to companies on accrual basis. This tax is payable only when the value of services provided in a financial year is more than Rs 10 lakh.
Is service tax applicable now?
So, as per law, Service Tax has been phased out by GST and customers are not supposed to pay it. However, the Service Charge is still applicable.
What is service tax and how it charged?
Definition: Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. This tax is payable only when the value of services provided in a financial year is more than Rs 10 lakh. This tax is not applicable in the state of Jammu & Kashmir.
Can penalty under service tax be waived?
Service Tax Penal Provisions Frequently Asked Questions However, Section 80 of the Finance Act, 1994, states that penalties can be waived off if the assessee in question can furnish reasonable evidence or proof that can provide justification of failure to make payment of service tax.
What are the different types of service tax?
Auctioneers service, other than an auction of property under directions or orders of a count of law or auction by the Central Government. 93. Public relations service. 94. Ship Management services. 95. Internet Telephony service. 96. Transport of persons by cruise ship. 97.
Which is the best description of service tax in India?
It is an indirect tax wherein the service provider collects the tax on services from service receiver and pays the same to government of India. Few services are presently exempt in public interest via Mega Exemption Notification 25/2012-ST as amended up to date and few services are charged service tax at abated rate as per Notification No.
Which is the consolidated rate of service tax?
Presently from 1 June 2016, service tax rate has been increased to consolidated rate at 14% +0.5%+0.5%= 15% of value of services provided or to be provided. The service tax rate now is consolidated rate as education cess and secondary higher education cess are subsumed with 2% of “Swach Bharat Cess (0.50%)” has been notified by the Government.
Are there any services exempt from service tax?
Few services are presently exempt in public interest via Mega Exemption Notification 25/2012-ST as amended up to date and few services are charged service tax at abated rate as per Notification No. 26/2012-ST as amended up to date.