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All About Service Tax

Suresh Prasad (www.aubsp.com) (15630 Points)

07 March 2011

Service Tax

Chapter V of the Finance Act, 1994

Amended upto Dec. 2010

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Suresh Prasad (www.aubsp.com) (15630 Points)
Replied 07 March 2011

What is Service Tax and who pays this tax?

Service tax is, as the name suggests, a tax on Services. It is a tax levied on the transaction of certain services specified by the Central Government under the Finance Act, 1994.

It is an indirect tax (akin to Excise Duty or Sales Tax) which means that normally, the service provider pays the tax and recovers the amount from the recipient of taxable service.

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Suresh Prasad (www.aubsp.com) (15630 Points)
Replied 07 March 2011

Who is liable to pay service tax?

Normally, the ‘person’ who provides the taxable service on receipt of service charges is responsible for paying the Service Tax to the Government (Sec.68 (1) of the Act).

However, in the following situations, the receiver of the Services is responsible for the payment of Service tax :

(i) Where taxable services are provided by foreign service providers with no establishment in India , the recipient of such services in India is liable to pay Service Tax,

(ii) For the services in relation to Insurance Auxiliary Service by an Insurance Agent, the Service Tax is to be paid by the Insurance Company

(iii) For the taxable services provided by a Goods Transport Agency for transport of goods by road, the person who pays or is liable to pay freight is liable to pay Service Tax , if the consignor or consignee falls under any of the seven categories viz. (a) a factory (b) a company (c) a corporation (d) a society (e) a co-operative society (f) a registered dealer of excisable goods (g) a body corporate or a partnership firm

(iv) For the taxable services provided by Mutual Fund Distributors in relation to distribution of Mutual Fund the Service Tax is to be paid by the Mutual Fund or the Asset Management Company receiving such service.

[ Refer: Sec. 68(2) of the Act read with Rule 2(d) of the Service Tax Rules, 1994.]

Suresh Prasad (www.aubsp.com) (15630 Points)
Replied 07 March 2011

Lots of More

FAQs on Service Tax

Attached File : 55 faqs on service tax.zip downloaded: 808 times

BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 07 March 2011

Good work sir ji, bookmarked..Your doing wonderful work in CCI....

1 Like

Suresh Prasad (www.aubsp.com) (15630 Points)
Replied 07 March 2011

Originally posted by : BALU A HELPING HAND...
	Good work sir ji, bookmarked..Your doing wonderful work in CCI....

Welcome jee

Thanks a lot for your Valuable comment jee

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M.SATHISHKUMAR (Audit) (68 Points)
Replied 13 March 2011

TDS means ? send full detail about TDs plea...

Jay Bodha (Employed) (139 Points)
Replied 16 March 2011

thanks for the file sir its really helpful as it comprise of lot of diversified and detailed concept

1 Like

Suresh Prasad (www.aubsp.com) (15630 Points)
Replied 21 March 2011

Originally posted by : Jay Bodha
	thanks for the file sir its really helpful as it comprise of lot of diversified and detailed concept

Thanks a lot for your Valuable comment jee..........!!!!!!!!

Suresh Prasad (www.aubsp.com) (15630 Points)
Replied 21 March 2011

Originally posted by : M.SATHISHKUMAR
	TDS means ? send full detail about TDs plea...

TDS MEANS TAX DEDUCTED AT SOURCES. THAT MEANS TAX SHOULD BE 
DEDUCTED ON THE INCOME OF THE ASSEASSEE AT THE TIME OF 
PAYMENT OR AT THE TIME OF CREDIT WHICH EVER IS EARLIER.

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Changes In TDS