SERVICE TAX
Service Tax is a tax levied by the government on certain specified services. It is an indirect tax, meaning it is not directly paid by the consumer but is collected by the service provider from the consumer and then remitted to the government
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What is Service Tax
Service Tax is a tax levied by the government on certain specified services. It is an indirect tax, meaning it is not directly paid by the consumer but is collected by the service provider from the consumer and then remitted to the government. The service provider is responsible for collecting and paying the tax to the government. Service Tax was applicable in India until the implementation of the Goods and Services Tax (GST) on July 1, 2017. After the introduction of GST, Service Tax was subsumed into GST.
Here Some Key Points Service Tax
Levied on Services
Service Tax was levied on the provision of specific services, such as consulting, banking, insurance, transportation, telecommunication, restaurant services, and more.
Indirect Tax
Unlike direct taxes like income tax, which individuals pay directly to the government, Service Tax was collected by service providers from their customers and then paid to the government.
Taxable Services
The government maintained a list of taxable services, and service providers were required to charge Service Tax on these services when providing them to customers.
Service Tax Rate
The rate of Service Tax could vary depending on the specific service being provided. The government periodically revised these rates.
Registration and Compliance
Service providers whose annual turnover exceeded a specified threshold were required to register for Service Tax and comply with various reporting and payment requirements.
Input Tax Credit
Service providers were generally allowed to claim input tax credit for the Service Tax paid on inputs and services used in the course of providing taxable services. This helped reduce the overall tax liability.
Exemptions and Abatements
Certain services were exempt from Service Tax, and in some cases, abatements (reductions) were allowed based on the nature of the service.
Filing of Returns
Service providers had to file periodic Service Tax returns, typically on a half-yearly basis, to report their taxable transactions and pay the tax due to the government.
Who Is Liable For Service Tax
- Service Provider
- Person Liable To Pay Tax
- Reverse Charge Mechanism
- Input Service Distributor (ISD)
- Taxable Services
- Threshold Limit
Frequently Asked Questions
If you are still thinking about opting for GSTBOY.COM for your loved ones, you can always check out the common queries about our service and support.
The Service Tax Act refers to the set of laws and regulations that govern the levy and collection of Service Tax in India. It outlines the legal framework, rules, and procedures for the taxation of services.
The primary liability for paying Service Tax generally falls on the service provider. However, in certain cases (reverse charge mechanism), the liability may shift to the service recipient. Specific rules apply to determine the liability.
Yes, small-scale service providers whose aggregate value of taxable services did not exceed the threshold limit were exempt from registering for Service Tax. The threshold limit could vary based on government notifications.
The reverse charge mechanism is a provision where the liability for paying Service Tax shifts from the service provider to the service recipient in specific cases. It applies to certain specified services and is subject to conditions and thresholds.
Our services in Direct tax are as under:
- PAN/TAN Registration.
- Income tax return filling.
- Income tax computation/payments/refunds.
- Representation before the Income tax authorities for completion of assessment, reassessment, etc.
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- Consultancy on various Income tax issues.
- Effective tax management, tax structuring and advisory services.
- Tax Planning for Corporates and others.