What Is Service Tax?

What is service tax?

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  • Definition: Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994.

What is meant by service tax?

Definition: Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994.

What is an example of service tax?

Service tax is a type of indirect Tax that you are liable to pay to the government once you. The consumer pays the service tax to the service provider while paying the bill (for example, your restaurant bill has a component of service tax). The government in turn collects the tax from the service providers.

What is service tax and how is it charged?

A service tax is a tax that is levied by the Government of India on services that are provided by a service provider. It is an indirect tax under the Finance Act, 1994. What are the modes of paying the service tax? Service tax can be paid via the G.A.R.

Who is responsible for service tax?

Person liable to pay service tax The tax is normally payable by the service provider. However law empowers the Government to notify a person other than the service provider to pay the service tax.. In some of the cases liability of payment of service tax has been shifted to the service provider.

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Is it mandatory to pay Service Tax?

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.

Is Service Tax and GST same?

GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged.

Is service tax payable on salary?

Conclusion: No service tax applicable to salary paid to employees under the secondment agreement as persons seconded to assessee working in the capacity of employees and payment of salaries etc was made to such employees by group companies only for disbursement purposes and hence employee-employer relationship exist

What happens if service tax is not paid?

If an assessee has not filed his or her service tax return, then a late payment fee of Rs 500 will be charged for the initial 15 days of delay. If an assessee has not filed his or her service tax return, then a late payment fee of Rs 1,000 will be charged for delays ranging from 15 to 30 days.

Who is exempt from service tax?

Any service that is provided or offered free of cost is exempt from service tax. Taxable services that are provided to diplomats and their family members for official purposes are exempt from service tax.

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How do you calculate service tax?

Find the total sales price for taxable goods and services When you calculate the amount of sales tax a customer owes for the purchase of several goods or services, add the listed sales price of each taxable item together to find the total taxable sales price.

Is service tax deducted?

Service tax cannot be deducted from the income tax payable by an assessee. However, the cost of any service availed of for business, including the service tax paid, is considered a deductible expense while computing the income under the head ‘Income from business or profession’.

How can I check my service tax number?

Service tax Number can be easily derived from the PAN card of the assessee. The mandatory thing you should have is the PAN card of the assessee, through which you can derive the Service tax number easily.

What are the uses of Service Tax?

Service tax was paid to the government in exchange for different services received from service providers. Though the tax was paid by service providers, it was recovered from customers who bought or availed of the taxable services.

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.

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