Overview of Service Tax
Background of service tax
- General rate 12% plus education cess of 2%, plus SAH education Cess 1% , making effective tax rate @12.36%.
- Tax is payable on all services excluding those in negative list w.e.f. 1-7-2012.
- Service provided or agreed to be provided In the taxable territory (Broadly, India plus 200 nautical miles inside the sea minus Jammu and Kashmir is ‘taxable territory’).
- Point of Taxation Rules relevant only to determine due date of payment of service tax.
- Rate of Exchange in case of export & import of services will be as per Customs Provisions i.e. as notified by CBE&C – usually it is notified at the beginning of every month and not changed in the month (unless there are wide fluctuations). RBI Reference rate or rates announced by FEDAI is not relevant or rate at which Bank debited/credited account not relevant
Valuation will be as per section 67 of Finance Act, 1994 read with Valuation Rules. Interpretation of description of service (classification of service) based on principles indicated in section 66F of Finance Act, 1994
Service tax on portion of deemed sale of goods
The ‘deemed sale’ as aforesaid has been specifically excluded from definition of ‘service’ itself vide section 65B(44) of Finance Act, 1994 introduced w.e.f. 1-7-2012. However, on some portion of ‘deemed sale’, service tax is imposed. Works contract is a composite contract which comprises of goods plus service but where the intention is not to sale ‘goods’ as ‘goods’. Examples are – sale of constructed flat, painting of car, taking Xerox copy or photograph etc. In such cases, Service tax is imposed on service portion of Works Contract and State Vat is imposed on goods portion. Service portion in activity of supply of food in any manner as part of that activity (like serving of food in restaurant or outdoor catering or catering as part of other services like mandap, shamiana, convention) is subject to service tax. State Vat is payable on goods portion.
Service Tax under Negative List Approach
Meaning of ‘service’ [section 65B(44)]
‘Service’ is defined for first time w.e.f. 1-7-2012 vide section 65B(44). As per the definition, any activity carried out by a person for another for consideration is ‘service’ – It also includes ‘declared service’.
Activity – CBE&C Clarification dated 20-6-2012
The word activity would include an act done, a work done, a deed done, an operation carried out, execution of an act, provision of a facility etc. It is a term with very wide connotation. Activity could be active or passive
Exclusions from definition of ‘service’
Section 65B(44) also defines what is not ‘service’. Distinction between ‘Negative List’ and activities excluded in section 65B(44) is that activities listed in ‘Negative List’ is service but not taxable while activity excluded from definition of ‘service’ is not ‘service’ at all. Thus, service in ‘Negative List’ will have to be considered for purpose of rule 6 of Cenvat Credit Rules but not activities which have been excluded from definition of ‘service’
What is not ‘service’ [Explanation to section 65B(44)]
- Activity of mere transfer of title in goods or immovable property is not ‘service’ [security is ‘goods’. Hence, transfer of security is not ‘service’]
- Deemed sale of goods under Article 366(29A) of Constitution of India is not ‘service’.
- Mere transaction in money is not service.
- Mere Actionable claim – claim of unsecured debt or beneficial interest in movable property, lottery ticket –is not service.
- Service provided by employee to employer – not ‘service’ [However, service provided by employer to employee can be ‘service’]
- Fees paid to Court or Tribunal is not service
- Duties performed by MP, MLA, MLC , Members of Panchayats, Members of Municipalities and Members of other local authorities is not ‘service’.
- Duties performed by persons holding Constitutional post, Member or a Director in a body established by the Central Government or State Governments or local authority is not ‘service’
- Any legal tender (Indian or foreign currency) is ‘money’.
- Transaction may be by cash, cheque, promissory note, DD, LC, money order, electronic transfer.
- Dividend, loans, advances, deposits, repos, reverse repos, share of profit are mere transaction in money [However, service tax is payable if advance is for provision of service]
Renting of immovable property, construction, software, temporary transfer of IPR, hiring, leasing, hire purchase and financial lease, service portion in execution of works contract, service portion of supply of food, agreeing to refrain from act or tolerate an act or situation, or to do an act are ‘declared services’ [section 66E]. This is ‘deemed service’ to make clear the intention that these activities will be subject to service tax. Some of these are specifically included as these are partly covered under List II i.e. State List (like works contract, supply of food, hire, financial lease, hire purchase). Renting of immovable property has been specifically included as there were disputes and litigation on taxability of this service, though now its validity has been upheld by six High Courts. Service tax on software is a debatable issue since software (both packaged and tailor made) have been held as goods. Hence, it is included in ‘declared service’ to make the taxability clear.
To do an act
- To do an Act is ‘declared service’
- Actors, singers and artists would be liable, except copyright
- Advance or signing amounts taken by actors, artists, authors, consultants, music directors
- Brand Ambassadors, models subject to service tax
Exemptions in service tax
Exemption and Negative List
In addition to negative list, there is a huge list of 39 services which have been exempted, vide Mega Exemption Notification No. 25/2012-ST dated 20-6-2012. Distinction between exemption and Negative List is that service in negative list is ‘service’ but not taxable at all. Exempted services are taxable but are exempted by Central Government by issue of a notification. Exemption can be changed easily but not Negative List. Activity excluded from definition of ‘service’ under section 65B(44) is not ‘service’ at all. Hence, rule 6 of Cenvat Credit Rules will not apply.
Important Exemptions
- Services by UN and international organisations
- Health care and veterinary services
- Services by Charitable Organisations in respect of specified charitable activities only and construction of building for religious purposes for Charitable Organisation registered under section 12AA of Income Tax Act. Services imported by Charitable Organisations are also exempt from service.
- Religious ceremony and renting of religious places
- Advocate or Advocate firm to non-business entity or business entity with turnover upto ` 10 lakhs
- Person on Arbitral Tribunal
- Technical testing of new drugs
- Recreation relating to arts, culture, sports
- Services to or by recognised educational institution for auxiliary educational services and renting of Immovable Property (but not placement services)
- Auxiliary educational Services – Outsourced activities, Midday meals, admission and examination related services, mid-day meals, transport of students, staff, faculty
- Services to recognised sports body (but brand ambassadors not exempt)
- Sports sponsorship to recognised bodies (not IPL)
- Services provided to Government or local authority or governmental authority for erection, construction, maintenance, repairs of non-commercial or non-industrial use, educational purpose, sewage, residential colony etc.
- Infrastructure related civil construction services (discussed under construction services)
- Temporary transfer or permitting use of Copyright (except sound recording)
- Services of performing artists
- Services of journalists
- Hotels, guest houses with less than ` 1,000 per day tariff
- Restaurants without AC/central heating and without bar
- Goods transport upto ` 750 per consignee and ` 1,500 per vehicle and specified agricultural commodities
- Renting of motor vehicle to state transport or GTA
- Transport of passengers (in specified cases only).
- Parking for public exempt but not leasing for parking space
- Specified general insurance schemes exempt.
- Services by incubatee upto ` 50 lakhs
- Services by Trade Union.
- Housing Society or RWA to its members upto ` 5,000 p.m.
- Services of mutual fund agents or distributors of mutual fund, marketing agents of lottery
- Selling Agents or distributor of SIM card
- Sub-contractor under works contract providing service to main contractor (who is also under works contract), when service of main contractor is exempt
- Job work of agriculture, textile processing, diamonds and gemstones, parts of cycles and sewing machine
- Job work exempt where principal manufacturer is paying excise duty – when material sent under rule 4(5)(a) of Cenvat Credit Rules
- Business Exhibition held outside India (Really not taxable at all)
- Public telephones
- Services of slaughtering of animals.
- Services from outside India to Government or Charitable Organisations
- Public Libraries
- Services by ESIC
- Slump sale, sale of business, demergers
- Public conveniences like toilets, bathrooms etc.
- Services by Governmental authority.
In the negative list, terms like ‘excluding’, ‘other than’ and ‘except’ have been used. It means those service mentioned after ‘excluding’, ‘other than’ or ‘except’ would be taxable i.e. they are not in negative list. Remember – Two negatives make one positive.
- Services by Government or local authority, except support service (In case of support services, usually service receiver is liable to pay service tax)
- Services by RBI, foreign diplomatic missions.
- Agriculture and agricultural produce related services.
- Trading of goods is not taxable service (goods include securities).
- Process that results in ‘manufacture’ of goods is not ‘service’ (since then excise law provisions become applicable)
- Advertisement other than advertisement and sale of time slot on TV and radio (Services of advertisement agents and services of advertisement design will be subject to service tax. Advertisements on TV and radio will be subject to service tax)
- Toll charges (but service for collection of toll is taxable)
- Entertainment, amusement, gambling, betting, lottery (as this is covered in List II i.e. State List).
- Transmission and Distribution of Electricity by authorised bodies (however, no service tax even on private basis as tax on consumption and sale of electricity is State subject i.e. List II)
- Educational services (recognised), training in arts, culture, sports – no tax on midday meals and bus services to students and staff (Commercial coaching and training will be subject to service tax)
- Renting for residential purposes.
- Interest or discount on deposits, loans, advances (need not be by Bank or FI)
- Inter se sale or purchase of foreign currency among Banks and authorised dealers (However, commission on sale and purchase by authorised dealers and Banks to others will be subject to service tax)
- Passenger transport in stage carriage, metro, inland waterways, metered taxis, auto-rickshaws is in negative list. However, transport in tourist vehicles and tour operators and transport for tourism, conducted tour charter or hire in contract carriages will be subject to service tax.
- Tax on rail transport of passengers on 30% value on AC and first class (expected to be levied w.e.f. 1-10-2012)
- Passenger transport in inland waterways
- Public transport in vessel between places in India except for tourism purposes
- Transport of goods by road is in negative list (except Goods Transport Agency (GTA) and Courier).
- Transport of goods air or vessel (from outside India upto customs station of clearance in India)
- No tax on transport in inland waterway.
- Funeral, burial, crematorium or mortuary related services and also transportation of deceased (Ambulance Service).
Small Service Provider Exemption
Exemption if value of taxable services rendered in previous financial year did not exceed ` 10 lakhs – Notification No. 33/2012-ST dated 20-6-2012. Exempted turnover not to be considered for 10 lakh limit. Turnover of sale or manufacture of goods is not to be considered for calculating the ten lakh limit. If turnover crosses ` 10 lakhs in any financial year, tax payable after Rs10 lakhs in that financial year. However, no exemption will be available in next financial year. He is required to register when his turnover crosses ` 9 lakhs.
Need for interpretation of description
Description of service used at various places like- (a) Negative list of services (b) Declared list of services (c) Services exempted by a notification (d) Place of Provision of Service Rules to determine where the service is provided (e) Service Tax Rules (f) Cenvat Credit Rules (g) Service Tax Valuation Rules etc.
In some cases, a composite service may consist of two or more different services, termed as ‘bundled services’. In such case, it is necessary to determine whether a particular service corresponds to a specified head
Reference to main service does not include auxiliary service [section 66F(1)]
Reference to a service (herein referred to as main service) shall not include reference to a service which is used for providing main service.
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Specific description prevails over general description.
- This will be so even in case of ‘bundled service’
- If hotel provides convention facilities with food, it will be ‘convention service’ and not ‘mandap service’ or ‘catering service’.
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Turnkey project, package tour, boarding schools are examples of naturally bundled services.
- In case of naturally Bundled service – description to be accepted is on basis of essential character is relevant [section 66F(3)(a)]
- For example, in case of educational institute providing boarding arrangements, the essential character of service is education.
- Airlines providing food, video facility. The essential character is air transport of passengers.
- Service provider of Air transport of goods providing door delivery by road is still air transport of goods service as that is the essential character of service.
- Educational Institution providing Boarding Facilities
- Hotel providing convention plus food facilities. The essential character is convention service. Provision of food is incidental.
- Renting of commercial property coupled with charges for security, cleaning, air conditioning etc. This is naturally bundled service and should be termed in totality as renting of commercial property.
- Services of freight forwarder – essentially transport of goods – other services incidental
If services are not naturally bundled – then description as single service which results in highest liability of service tax will be adopted as description of that service. For example –
- Property given on rent for residential cum commercial purposes – Residential – 60% and commercial – 40% area. It is not naturally bundled – then highest liability of service tax is when renting for commercial purposes (as service tax liability is Nil in case of residential property). Hence, entire renting will be termed as renting for commercial purposes.
- A Chartered Accountant or Management Consultant taking flat on rent, out of which he is using one room for office purposes. This is naturally bundled service and will have to be classified as renting for residential purposes.
Distinction between ‘bundled service’ and service as ‘pure agent’ – Bundled service means all expenses incurred or sub-services provided are part of main service, while in case of ‘pure agent’, the expenses incurred are not part of the service.
The service provider collects various amounts from customer which are not part of his value of services. For example, air travel agent collecting value of ticket in addition to his commission. This is termed as collection as ‘Pure Agent’ and then its amount is not included in value of his taxable service.
CHA arranging for internal transport, storage, loading/unloading/ stevedoring, crane charges etc. These are not part of his services. However, in most of the cases, he adds his mark up and then recover these amounts from customer. In that case, such collection is not as ‘pure agent’. In such case, a view is possible that all such services arranged by CHA are part of ‘naturally bundled service’ and CHA may be held liable to pay service tax on entire amount collected by him from customer (except the statutory charges paid by him on behalf of the customer).
Reverse Charge in service tax
Reverse Charge (Tax Shift)
- Normally, service tax is payable by person providing the service. Section 68(2) makes provision for reverse charge i.e. making person receiving the service liable to pay tax. Provision can be made that part of tax will be paid by service receiver and part by service provider. Provisions relating to reverse charge are contained in Notification No. 30/2012-ST dated 20-6-2012.
The small service provider exemption of ` 10 lakhs not available when tax is payable under reverse charge. Cenvat credit cannot be used to pay tax by service receiver. Service tax as to be paid by cash only i.e. GAR-7 challan. Once paid, Cenvat credit can be taken if otherwise it is his eligible ‘input service’. Tax should be paid under service tax registration number of service receiver and included in his return as he is liable to pay service tax.
Business Entity and Body Corporate In some cases, reverse charge is applicable only when service receiver is business entity registered as ‘body corporate’.
“Business entity” means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession. Thus, Government, charitable organisation is not ‘business entity’.
“Body Corporate” – Company, LLP, Cooperative Society is Body Corporate – Firm, HUF, Trust is not ‘Body Corporate’ [Society registered under Societies Act is legally not ‘body corporate’].
Service Tax Responsibility chart under Reverse Charge
| Nature Of Service | Service Provider | Service Receiver | Tax payable by Service Provider |
Tax payable by Service Receiver |
| Insurance Services | Insurance Agent | Insurance Business Entity | Nil |
100 |
| Goods Transport Agency | Goods Transport Agency | Consignor Or Consignee, who is making payment (not applicable if person liable to pay freight is Individual/ proprietorship concern / huf) | Nil |
100 |
| Sponsorship | Any Person | Body Corporate Or Partnership Firm | Nil |
100 |
| Arbitral Tribunal | Arbitral Tribunal | Business Entity | Nil |
100 |
| Advocate Services | Individual Advocate | Business Entity having turnover exceeding ` ten lakhs per annum | Nil |
100 |
| Support Service By Government or Local Authority | Government | Business Entity | Nil |
100 |
| Rent A Cab Services | Individual/ HUF/Proprietary Or Partnership Firm/AOP | Company or any other Registered Body Corporate |
|
|
| (A) In Respect of Services Provider or Agree To Be Provided By way Of Renting Or Hiring Any Motors Vehicle Designed To Carry Passenger On Abated Value | Nil |
100 |
||
| (B) In Respect of Services Provider or Agree To Be Provided By way Of Renting Or Hiring Any Motors Vehicle Designed To Carry Passenger On Non Abated Value | 60 |
40 |
||
| Supply Of Manpower | 25 |
75 |
||
| Security Services |
|
|
||
| Works Contract Services | 50 |
50 |
||
| Director of Company |
|
|
||
| Where Services Provider Is Located Out Of Taxable Territory (E.G Import Of Services) | Any Person | Any Person | Nil |
100 |
Note:-
In the following cases, 100% service tax liability rests with the service provider only if service provider is a corporate entity:-
i. Renting of Motor vehicle
ii. Manpower services & Security Agency
iii. Works Contract
Abatements and Composision under service tax
Composition Schemes In some cases, finding of value of service is not easy e.g. sale or purchase of foreign exchange, air travel agent – in such cases, optional composition schemes provided. In case of composite contracts, e.g. construction, finding value of service is difficult. In such cases, optional composition schemes are available.
Abatement schemes In case of some services, abatement is available i.e. part of tax is exempted – e.g. 40% in case of air travel, 25% in case of GTA service, 40% in case of renting or hire of motor vehicle to carry passengers. Restrictions on Cenvat Credit. In some cases, abatement scheme is used as composition scheme
Services Under Composition Schemes
| Taxable Service | Partial abatement / Composition Scheme | Conditions | Relevant Notification/Rule |
| Accommodation booking service by tour operator | 10% of amount charged (Abatement Scheme, though really it is composition scheme) | No Cenvat Credit. Invoice should be inclusive of cost of accommodation | Sr. No. 11(ii) of Notification No. 26/2012-ST dated 20-6-2012. |
| Air Travel Agent | Option to pay service tax at flat rate on ‘basic fare’ @ 0.6% in case of domestic booking and 1.2% in case of international booking – plus education cess (Composition Scheme) | No restriction on availment of Cenvat credit | Rule 6(7) of Service Tax Rules |
| Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises ( including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organizing a function) together with renting of such premises | Tax on 70% of amount charged including fair value of goods and services supplied by service receiver (to service provider) under same or different contract (Composition Scheme) | Cenvat credit of input services and capital goods is available. Cenvat credit on food items (covered under Chapters 1 to 22 of CETA) not available. Cenvat credit of other inputs is available. | Sr. No. 4 of Notification No. 26/2012-ST dated 20-6-2012 |
| Chit related services | Tax on 70% of amount charged (Abatement Scheme) | No Cenvat Credit allowed | Sr. No. 8 of Notification No. 26/2012-ST dated 20-6-2012. |
| Financial leasing and hire purchase | Tax on lease management fee, processing fee, documentation charges and administrative fee plus 10% of interest | No restriction on availment of Cenvat Credit | Sr. No. 1 of Notification No. 26/2012-ST dated 20-6-2012 |
| Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly, if value of land is included in the amount charged from the service receiver | Tax on 25% of amount charged including fair market value of all goods and services supplied by recipient (termed as Abatement Scheme – actually it is composition scheme) | Cenvat credit of input services and capital goods can be taken but not of input goods | Sr No. 12 of Notification No. 26/2012-ST dated 20-6-2012 |
| Foreign Currency – sale and purchase | At slab rates prescribed under rule 6(7B)on total gross amount of currency exchanged (OptionalComposition Scheme) | No restriction on availment of Cenvat Credit | Rule 6(7B) of Service Tax Rules |
| Foreign Currency – sale and purchase | Value is difference between buying or selling rate and RBI reference rate (Normal Scheme of valuation) | No restriction on availment of Cenvat Credit | Rule 2B of Service Tax (Determination of Value) Rules |
| Life Insurance | 3% of net premium (excluding investment or savings part, if such amount is informed to policy holder) – If not so informed, 3% in first year and 1.5% in subsequent years(Composition Scheme) | No restriction on availment of Cenvat Credit | Rule 6(7A) of Service Tax Rules |
| Lottery ticket promotion | ` 7,000 or ` 11,000 per ` 10 lakhs of ticketsprinted by State lottery (Composition Scheme) | No restriction on availment of Cenvat Credit | Rule 6(7C) of Service Tax Rules |
| Outdoor caterer | Tax on 60% amount excluding State Vat (Composition Scheme) (Till 1-7-2012, it was 50%) | Cenvat credit of input services and capital goods is available. Cenvat credit on food items (covered under Chapters 1 to 22 of CETA) not available. Cenvat credit of other inputs is available. | Rule 2C of Service Tax (Determination of Value) Rules |
| Renting of motor vehicle designed to carry passengers | Tax payable on 40% of amount charged (Abatement Scheme) | No Cenvat credit available | Sr. No. 9 of Notification No. 26/2012-ST dated 20-6-2012 |
| Restaurant service | Tax on 40% amount excluding State Vat (Composition Scheme) (Till 1-7-2012, it was 30%) | Cenvat credit of input services and capital goods is available. Cenvat credit of excise duty on food items (covered under Chapters 1 to 22 of CETA) not available. Cenvat credit of other inputs is available. | Rule 2C of Service Tax (Determination of Value) Rules |
| Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes | Tax payable on 60% of amount charged (Abatement Scheme) (Till 1-7-2012, the tax payable was on 50% amount). | Cenvat Credit of input services allowable but no Cenvat credit of inputs and capital goods | Sr. No. 6 of Notification No. 26/2012-ST dated 20-6-2012 |
| Tour operator – Package tours (“package tour” means a tour wherein transportation, accommodation for stay, food, tourist guide, entry to monuments and other similar services in relation to tour are provided by the tour operator as part of the package tour to the person undertaking the tour). | Tax is payable on 25% of gross amount charged (Abatement Scheme) | No Cenvat credit available. Bill to be inclusive of all charges for the tour. | Sr. No. 11(i) of Notification No. 26/2012-ST dated 20-6-2012 |
| Tour operator – providing services solely of arranging or booking accommodation for any person in relation to a tour (If Bill includes cost of accommodation) | Tax is payable on 10% of amount charged (Abatement Scheme) | No Cenvat credit available. Bill to be inclusive of charges for such accommodation | Sr. No. 11(ii) of Notification No. 26/2012-ST dated 20-6-2012 |
| Tour operator – Other than package tours and other than service of booking accommodation where Bill includes cost of accommodation | Tax is payable on 40% of amount charged (Abatement Scheme) | No Cenvat credit available. Bill to be inclusive of all charges for the tour | Sr. No. 11(iii) of Notification No. 26/2012-ST dated 20-6-2012 |
| Transport of goods by rail | Tax payable on 30% of amount charged (Abatement Scheme) | No restriction on availment of Cenvat Credit | Sr. No. 2 of Notification No. 26/2012-ST dated 20-6-2012 |
| Transport of goods by road by Goods Transport Agency (GTA) | Tax payable on 25% of amount charged (Abatement Scheme) | No Cenvat Credit available (Certificate should be taken from the GTA that he has not availed Cenvat credit, as tax is payable by service receiver under reverse charge – this headache was not there earlier) | Sr. No. 7 of Notification No. 26/2012-ST dated 20-6-2012 |
| Transport of goods in a vessel from one port in India to another | Tax payable on 50% of amount charged (Abatement Scheme) | No Cenvat Credit available) | Sr. No. 10 of Notification No. 26/2012-ST dated 20-6-2012 |
| Transport of passengers by air | Tax payable on 40% of amount charged (Abatement Scheme) | Cenvat Credit of input services allowable but no Cenvat credit of inputs and capital goods | Sr. No. 5 of Notification No. 26/2012-ST dated 20-6-2012 |
| Transport of passengers by rail | Tax payable on 30% of amount charged (Abatement Scheme) | No restriction on availment of Cenvat Credit | Sr. No. 3 of Notification No. 26/2012-ST dated 20-6-2012 |
| Works Contract Service | Tax on value of service calculated as per rule 2A(i) or Tax on 25%/40%/60% of gross amount charged as specified in rule 2A(ii) (Composition Scheme) Tax on 25% of amount charged including fair market value of all goods and services supplied by recipient (termed as Abatement Scheme – actually it is composition scheme) | Cenvat credit of input services and capital goods is available. Cenvat credit of excise duty on goods, the property of which is transferred is not available. Cenvat credit of other inputs (like consumables) is available | Rule 2A of Service Tax (Determination of Value) Rules |
Registration
What are the penal provisions for various contraventions of the Service Tax Law?
In terms of Section 69 of the Finance Act,1994 (Chapter V) read with rule 4 of the Service Tax Rules,1994
- Every person who has provided a taxable service of value exceeding Rs. 9 lakhs, in the preceding financial year, is required to register with the Central Excise or Service Tax office having jurisdiction over the premises or office of such service provider.
- In case a recipient of services is liable to pay service tax he also has to obtain registration.
- The Input Service Distributors are also required to register them as per Notification No.26/2005-ST dated 07.06.2005 as amended.
- Every person who provides taxable service and is liable to pay service tax.
Payment of Service Tax
| Category | Frequency | Due Dates |
| Payments through Bank : | ||
| In case of Individuals, Proprietary Firms & Partnership Firms | Quarterly as mentioned below - |
- by 5th July - by 5th Oct - by 5th Jan. - by 31st March |
| Others (e.g. Companies, Societies, Trusts etc.) | Monthly | By 5th of the month immediately following the month in which payments are received towards the value of taxable services. However, in case of March, the payment should be made by 31st March. |
| Electronic Payments through Internet : (Mandatory for assesses who have paid service tax of Rs.10 lakhs or more including the amount paid by utilization of CENVAT credit, in the preceding financial year). | ||
| In case of Individuals, Proprietary Firms & Partnership Firms | Quarterly as mentioned below - |
|
| Others (e.g. Companies, Societies, Trusts etc.) | Monthly | By 6th of the month immediately following the month in which payments are received towards the value of taxable services. However, in case of March, the payment should be made by 31st |
Return of Service Tax
ST-3 Return is required to be filed twice in a financial year – half yearly. Return for half year ending 30th September and 31st March are required to be filed by 25th October and 25th April, respectively.
Compliance Services at A. Chandak & Co.
- Getting yourself registered with Service Tax Authorities.
- E-Filing of Service Tax Returns.
- Consultancy on Service Tax Matters.
- Maintenance of Service Tax Records.
- Payment of Service Tax
- Retainerships
- Liaison with Service Tax Authorities.
Why A. Chandak & Co. requires for Service Tax Compliance
Service Tax has now become one of the major sources of yielding revenue to the exchequer. It has been extended to several items with enhanced rates in recent budgets. It's scope is very much likely to be widened and rates to be raised further.
The rules and regulations and various procedures laid down under service Tax are very cumbersome, tedious and best with the problem of interpretation , disputes and litigation all its provisions have to be completed with very strictly . Even minor lathes can land you in soup. The tax has to be deposited in treasury with in the stipulated period and various returns are to be filed on prescribed forms with in specified dates failing which return penal action in called for.
We have specially trained staff to handle the entire Service Tax work you may entrust this burden on us and feel free to focus your attention to enhance your business or profession.
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