S ERVICE T AX. W HAT IS S ERVICE T AX ? Indirect tax on services Like VAT on goods Deposited by...

SERVICE TAX

WHAT IS SERVICE TAX?

Indirect tax on services

Like VAT on goods

Deposited by service provider

Recovered from client

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APPLICABILITY3

Service ? • Any Act done for fees, etc.

Coverage ?• All services, except negative list

• Codes for 119 services• All others under residual

Exemption • For some NGOs

Charge on • Fees and Expenses

Tax Rate • 12.36%

REGISTRATION

Fill form ST-1 in duplicate and enclose PAN Proof of address

Submit Central & Excise office Jurisdictional Division Office in metros

Application within 30 days

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HELPAGE PARTNER WS, JAN-FEB’13

WHAT IS FEE?5

Fees • Act by a charity for consideration

If

• If providing something in return…• Display donor’s name• Give business advantage to

donor

NOT FEE…

Payments

• Donations• Gifts• Grants without obligation

• e.g. specific research

Unconditional• Stipulating proper usage of funds• Furnishing of account

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NGO EXEMPTION

Exempt • (para 6.3 of circular)

If • Exempt u/s 12A

Activities• Public Health• Religion• Education• Environment / culture

Others • Turnover upto 25 lakh p.a.

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PUBLIC HEALTH

Care or counselling of terminally ill persons or persons with severe

physical or mental disability,

persons afflicted with HIV or AIDS, or

persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or

Public awareness of preventive health, family planning or prevention of HIV infection;

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HELPAGE PARTNER WS, JAN-FEB’13

RELIGIOUS

Advancement of religion

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HELPAGE PARTNER WS, JAN-FEB’13

EDUCATION

Advancement of educational programmes or skill development relating to,- abandoned, orphaned or homeless children;

physically or mentally abused and traumatized persons;

prisoners;

persons over the age of 65 years residing in a rural area;

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HELPAGE PARTNER WS, JAN-FEB’13

ENVIRONMENT ETC.

Preservation of environment including watershed, forests and wildlife;

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HELPAGE PARTNER WS, JAN-FEB’13