What is
Service Tax?
Service Tax as the name suggests itself, Tax on Services
provided by Service Provider to Service recipient. It is a part of indirect tax
wherein Service Provider has a responsibility to collect it from the Service
recipient & to deposit it to central government with-in due date. It is a
tax imposed by central Government on certain services as notified by them.
Currently, Service Tax in India is imposed at 15% on the value of the taxable
service which includes Krishi Kalyan cess @ 0.5% and Swachh Bharat Cess @ 0.5%
on the service tax amount.
Any person who has provided taxable services in India of value
exceeding Rs.9 lakh, in the previous financial year is compulsorily required to
get Service tax registration.
Relaxation
to Startups from Service tax registration:
Small Scale Service Provider is not required to get
registration under service tax until & unless the turnover of its taxable
services in a financial year crosses the limit of Rs. 10 Lakh.
Service
Tax Return in India
Any person who has obtained Service
Tax Registration in India is
required to file Service tax return in Form ST-3 twice in a year each for half
year. Return for the period from 1st April to 30th September are required to be
filed by 25th October and for the period from 30th September to 31st March are
required to be filed by 25th April for each financial year.
Mode of
Payment of Service Tax?
In case of proprietorship & Partnership firm, Service Tax
is required to be paid quarterly through bank challan or electronically. In
case of Company, Trust, Societies & other entities are required to deposit
service tax monthly through bank challan or electronically.
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