What is service tax who is liable to pay service tax?
Every service provider is liable to pay service tax in India. Though service tax is an indirect tax which is collected by the ultimate consumer, but still it is the duty of the service provider to collect those taxes and pay to the government.
Is service tax still charged while providing the service?
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.
What are the rules of service tax?
Service Tax Billing Under Rule 4A of the Service Tax Rules, 1994, it is compulsory for a service tax assessee to issue a bill or invoice within 14 days from the date on which the taxable service was completed or the date on which the payment was received for the service, whichever comes first.
Is service tax registration mandatory for exempted services?
Although Service Tax is required to be paid only when the aggregate value of services provided exceeds Rs. 10 Lakhs in a financial year, the service tax provider is required to apply for Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs.
Is service tax registration required for exempted services?
However, even though this exemptions can be availed if the total turnover is in excess of Rs 10 lakhs, small service providers are mandatorily required to place an application for service tax registration within a time frame of thirty days after his or her turnover goes beyond Rs 9 lakhs.
What are the features of service tax?
The salient features of levy of service tax are:
- Scope: It is leviable on taxable services ‘provided’ or ‘to be provided’ by a service provider.
- Rate: It is leviable @ 12% of the value of taxable services.
- Taxable services: Service tax is leviable only on the taxable services.
When is a service provider liable to pay service tax?
However, the collection of tax takes place when the consideration is actually received by the service provider. It no payment is received, there is no liability to pay service tax. Thus, in case of bad debts, service provider will not be liable to pay service tax to the Central Government.
Who is the service receiver of a service?
Service tax is payable only when a taxable service is rendered or provided to the service receiver. While generally, in case of sale, receiver is the buyer or customer, in case of a service, service receiver is the client.
What are the two arms of service tax?
SERVICE PROVIDER AND SERVICE RECEIVER – THE TWO ARMS OF SERVICE TAX. According to section 66, the charge of service tax is based on taxable event. The taxable event is the rendering of one of the taxable services as provided in sub- section 105 of section 65.
When does a charge of service tax arise?
According to section 66, the charge of service tax is based on taxable event. The taxable event is the rendering of one of the taxable services as provided in sub- section 105 of section 65. The liability to tax arises only when a taxable service is provided or agreed to be provided by one person to other person.