SERVICE TAX

M. P. V. VALIA COLLEGE OF COMMERCE

S. Y. BAF(IV SEMESTER)

TAXATION- IIINDIRECT TAXES

Presenting by,

Rikesh Chaurasia

Roll No: 807

Service TaxService tax was introduced in India for the

first time in 1994.

Service Tax is a tax imposed by Government Of India on services provided in India.

 The current rate is 12.36% on gross value of the service

What is Service Tax ?Tax on Services.

Not an profession

It is an Indirect tax

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. 

Service Tax RatePeriod Rate

From 1.7.1994 to 13.05.2003 5%From 14.5.2003 to 09.09.2004

8%

From 10.9.2004 to 17.04.2006

10%

From 18.4.2006 to 10.05.2007

12.24%*

From 11.05.2007 to 24.02.2009

12.36%*

From 25.02.2009 10.3%*Now At Present 12.36%*

Inclusive of cess

List of Services Covered Under Service TaxThere are some detailed list of taxable

services viz. Rail Travel Agents, Tour Operator, Stock Exchange Services, Internet Telecommunication Services, Telephone, Transportation of Air and so on.

Applicability Section 64 (1)Applicable to the whole of India

except Jammu & Kashmir.

Thus any services provided within the territorial limits of the state of Jammu & Kashmir are excluded from the purview of levy of tax i.e. it will not attract service tax.

Contd……If the service provider is from Jammu &

Kashmir and the service is provided in any other state then the service tax is attracted.

Service provider

Service Receiver

Applicability of Service Tax

Inside J & K Inside J & K Not Applicable

Inside J & K Outside J & K Applicable

Outside J & K Inside J & K Not Applicable

Valuation Of Taxable ServicesSection 66 of the Finance Act, 1994 levis a

charge of charge of service tax on the “value of taxable services” provided or to be provided.

As per the provision of the section 67 of the Act, the value of Taxable Services shall be the gross amount charged by the services provider for services provided or to be provided.

CENVAT Credit- Some Aspects CENVAT stands for Central Value Added Tax.

CENVAT Credit Rules, 2004 are made effective from 10-09-2004.

These rules deal with both manufacturers and with providers.

The interest and penalty amounts cannot be taken as credit

Import of ServicesTaxable services imported into India are

liable to services tax as per the provisions of Section 66A.

Accordingly, where any taxable services is – (a) provided or to be provided by a person who – (I) has established a business or (II) has a fixed establishment from where the services is provided or to be provided

Contd………….

(b) received by a person who has his place of business, fixed establishment, permanent address or usual place of residence in India.

Procedure under Service TaxRegistration

Application for registration is to be made by every person liable for paying the Service Tax.

In Form ST-1 within 30 days from the date on which Service Tax is levied or within 30 days from the date of commencement of business whichever is later, to the Central Excise Officer having jurisdiction.

Contd……

• Any provider of taxable services whose aggregate value of taxable service in a financial year exceeds Rs. 9 lacs, has to get themselves registered.

Registration of Service Tax

PaymentPayment by Individuals, Proprietary concern

and Partnership Firms

Payable on amounts received during the Quarter

Payable on or before

1st April to 30th June 5th July

1st July to 30th September 5th October

1st October to 31st December 5th January

1st January to 31st March 31st March

ReturnsThe following returns have to be filled As service provider/Receiver

For the Half year To be filed on or before

1st April to 30th September

25th October

1st October to 31st March

25th April

Delay in Filing Return

Period of Delay Penalty

Up to to 15 days Rs. 500

16 to 30 days Rs. 1000

Beyond 30 days Rs.1000/- plus Rs.100/- per day from the 31st day till date of filing return

AssessmentThe Act provides for the self-assessment by

the Assessee i.e. the assessee shall himself assess and pay the tax.

Thus every Assessee (Service Provider or Service Receiver) has to himself assess his Service Tax provide/paid and thereafter file returns in Form No. ST-3 on Half yearly basis.

Thank you....