03 December 2011
1.Service Tax is tax on service 2.It is levied on transactions of certain services specified by the Central Government from time to time 3.Normally the person who provides the taxable service is responsible for paying service tax 4.In case of transportation who receives service is required to pay service tax that is to say consignee has to pay service tax 5.Example of taxable services are: a)Advertising b)Air Travel c)cable operator d)Chartered Accountant e)Clearing & Forwarding Agent etc Rate of Service Tax is 10.30%
04 December 2011
Service tax is an indirect levy imposed by the Union Government in terms of residuary entry No.97 in list (I) of the 7th Schedule of the constitution. The tax is applicable to services specified in the Section 64 to 96 of chapter V of the Finance Act, 1994 as amended.
The Government have also notified the procedures to be followed for levy and collection of service tax vide Service Tax Rules, 1994 as amended. At present the rate of Service Tax is 10% to be levied on the "Value of Taxable Service" and Education Cess @2% and Higher Education Cess@1% is leviable on the Service leived and collected. Generally speaking "Value of Taxable Service" means the gross amount charged by the Service provider for the taxable service rendered by him.
The person who provides the taxable service s, subject to certain exceptions, is responsible for paying the service tax to the government.
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