Who is eligible for service tax?
Who is eligible for service tax?
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.
Who is exempt from service tax?
Small service providers whose total turnover value of all taxable services provided by them is not more than Rs 10 lakhs over the course of a financial year are eligible to avail of service tax exemptions.
When did service tax started in India?
July 1, 1994
The provisions relating to Service Tax were brought into force with effect from July 1, 1994 vide chapter V of the Finance Act, 1994. It extends to the whole of India except the State of Jammu and Kashmir.
Who is responsible for service tax registration?
Service tax registration must be obtained by any person who provided a taxable service of value exceeding Rs. 9 lakhs, in the previous financial year. Failure to obtain service tax registration can result in penalty.
Is service tax applicable on government contracts?
Service Tax is leviable on the value equivalent to the gross amount charged for the works contract less value of the transfer of property in goods involved in the execution of the works contract which is leviable to VAT/ sales tax [Rule 2A of the Service Tax (Determination of Value) Rules, 2006].
Who introduced service tax concept in India?
Dr. Raja Chelliah Committee
The Service Tax was introduced in India around 21 years back on July 1, 1994 at the recommendations of Dr. Raja Chelliah Committee on tax reforms. The introduction of this levy in India can be termed as milestone in Indian Tax history.
Is service tax payable on receipt basis?
One major change made in service tax effective from 01/04/2011 is that the payment of service tax by the service provider from 01/04/2011 will be on Accrual Basis (instead of earlier provision of payment of service tax on receipt basis). Service Tax is payable as per Point of Taxation Rules, 2011.
What are the charges of service tax?
Calculation of Service Tax From the 1st of June 2016, service tax is levied at 15\% of the value of taxable services under Section 66 of the Service Tax Act. The 15\% includes 0.5\% Krishi Kalyan Cess and 0.5\% Swach Bharat Cess.