What are the rules of service tax?

What are the rules of service tax?

Service Tax Registration Rules Every individual liable to pay service tax should register through Form ST-1 within 30 days from the date on which service tax was levied. If an assessee is providing more than one taxable service, they can mention all the taxable services provided by them in a single application.

What is the applicable time limit in 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.

What is the turnover limit for service tax registration?

There has been no change in the threshold limits for service providers. Persons providing services need to register if their aggregate turnover exceeds Rs. 20 lakh (for normal category states) and Rs. 10 lakh (for special category states).

What are the conditions to pay GST under this scheme?

A registered taxpayer, whose aggregate turnover does not exceed Rs fifty lakh in the preceding financial year pay tax at a rate not less than 2.5% fo a manufacturer and 1% for others. Following taxable persons are not granted permission to opt for the scheme who: Supplies goods not leviable under the Act.

What is the current rate of service tax in India currently 2021?

The rate of Service Tax was 15% which has now increased to 18% for GST.

What is current service tax rate?

15%
After the new proposal brought in during the 2016 Union Budget, the current service tax rate is 15% Which is effective from June 1, 2016. How will the Krishi Kalyan Cess be distributed? A service tax is collected by the Central Government from service providers for offering certain types of products and services.

How do you change regular to composition in GST 2021?

How to Opt-In for Composition Scheme for FY 2021-22?

1. Step 1: Open and Log in to the GST Portal.
2. Step 2: Select the Registration option available under the Services section.
3. Step 3: Then select the application to Opt for composition levy as shown in the below snippet.

When did the Federal service tax rate change?

Change in Service Tax Rates. Last updated at May 29, 2018 by. Service Tax Rate increased to 15% w.e.f 1.6.2016. (Krishi Kalyan Cess Added @ 0.5%) Service Tax Rates have changed from time to time as shown below.

Are there any changes to the Form 1040 for 2020?

Important Changes for 2020 v With the redesign of Form 1040-NR for 2020, Schedules A, NEC and OI are being removed from Form 1040-NR and being issued as separate products. • Form 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents, is obsolete.

When do I have to pay taxes for 2020?

Estimated tax payments for 2020 normally due on April 15, 2020 and June 15, 2020 are treated as timely if made by July 15, 2020.

How does tax reform affect a small business?

From estimated taxes to withholding, tax reform has a significant effect on your taxes. Whether you are a small or large business, tax reform may affect your company. Tax reform affects retirement plans, tax exempt organizations and governments.

What is the exemption limit for service tax?

Rs. 10 Lakhs
The aggregate value of taxable services rendered by a service provider shall not exceed Rs. 10 Lakhs during the previous financial year. In other words, service tax exemption can only be claimed if in both the previous as well as the current financial year, the aggregate value of taxable services does not exceed Rs.

What is the limit for service tax registration?

All service providers in India are required to obtain service tax registration once the annual aggregate taxable services revenue exceeds Rs. 9 lakhs. Service tax payment or liability accrues once the aggregate value exceeds Rs. 10 lakhs.

What is service tax who is liable to pay service tax?

Person liable to pay service tax The tax is normally payable by the service provider. However law empowers the Government to notify a person other than the service provider to pay the service tax.. In some of the cases liability of payment of service tax has been shifted to the service provider.

What services are exempt from service tax?

Service Tax Exemptions apply to the following services outlined under the negative list

• Production.
• Harvesting.
• Testing.
• Cultivation.
• Agricultural protection.
• Supply of manpower to farms.
• Any agricultural process taking place on a farm.
• Lease of equipment or land.

How is your service tax exempt?

When revenue is Rs 10lakhs or less – If the total Revenue you earn from freelancing work is Rs 10lakhs or less, Service Tax rules do not apply. You will be exempt from collecting and paying service tax on your services. Here Revenue means your total receipts from your clients.

What is the penalty for not filing service tax return?

If an assessee has not filed his or her service tax return, then a late payment fee of Rs 500 will be charged for the initial 15 days of delay. If an assessee has not filed his or her service tax return, then a late payment fee of Rs 1,000 will be charged for delays ranging from 15 to 30 days.

Is there any penalty for not filing nil return?

Yes, if you fail to file NIL returns before 31st July, you might have to pay as much as Rs. 5,000 as a penalty to the IT department. This would be increased to Rs. 10,000 if you do not file NIL returns until the 31st December deadline.

What is the threshold limit for taking registration?

Persons providing services need to register if their aggregate turnover exceeds Rs. 20 lakh (for normal category states) and Rs. 10 lakh (for special category states).