What is service under Income tax Act?
“Taxable Service” means any service provided or to be provided [to any person], by any person in relation to holding of convention, in any manner; (Section 65 (105) (zc) of the Finance Act, 1994)
Is service tax applicable on consultancy?
A consultant is required to apply for registration for service tax within 30 days of turnover exceeding ₹ 9 lakh. When the aggregate value of services provided exceeds ₹ 10 lakh in a particular financial year, the consultant is required to pay service tax.
What is service tax discuss the main features of service tax in India?
The salient features of levy of service tax are: 1. Scope: It is leviable on taxable services ‘provided’ or ‘to be provided’ by a service provider. The services ‘to be provided’ in future are taxed only if payment in its respect is received in advance.
What are the types of service tax?
There are Four GST types namely Integrated Goods and Services Tax (IGST), State Goods and Services Tax (SGST), Central Goods and Services Tax (CGST), and Union Territory Goods and Services Tax (UTGST).
What is export of services under service tax?
Services that are deemed to be export of services are exempt from service tax. The service is not specified in the negative list of the service tax act. The place of provision of the services is outside India . The payment of service has been received by the provider in convertible foreign exchange.
Are professional services taxable in India?
If you’re a freelancer, professional or consultant, you can actually pay income tax on only half of your gross annual income. You can do this by using the Presumptive Taxation Scheme under Section 44ADA of the Income Tax Act. The only caveat is that your total income for the year should be less than ₹50 lakh.
How is service taxed India?
It is an indirect tax wherein the service provider collects the tax on services from service receiver and pays the same to government of India. Presently from 1 June 2016, service tax rate has been increased to consolidated rate at 14% + 0.5% + 0.5% = 15% of value of services provided or to be provided.
What are the elements of service tax?
Name and address of the service receiver. Name, address and registration number of the service provider. Classification, description as well as taxable service value of the service that is rendered. Payable service tax amount to be mentioned on the invoice.
What is service for the purpose of service tax?
Service Tax was earlier levied on a specified list of services, but in the 2012 budget, its scope was increased. It is charged to the individual service providers on cash basis, and to companies on accrual basis. This tax is payable only when the value of services provided in a financial year is more than Rs 10 lakh.
Are there any exempted services from service tax?
Some taxable services have been exempt from the whole of the service tax leviable thereon under section 66B of the said Act vide mega exemption notification no. 25/2012 – ST dated 20/6/12.
When was the first service tax notification issued?
First Notification issued notifying exempt services was Principal Notification No. 25/2012 – Service Tax, dated 20th June, 2012. While Negative list of services was specified in section 66D of Finance Act, 1994.
What is the current rate of service tax?
The authority for levy of Service Tax on specified services is contained in Section 66 of the Finance Act, 1994. At present, this section stipulates a rate of tax of 12 per cent of the value of a taxable service. In addition education cess @ 2% and secondary and higher education cess @1% of amount of service tax is also leviable.
When do I have to pay service tax?
from the date a particular Service Tax is levied or within 30 days from the date of commencement of business, whichever is later. There is no registration fee. Where a taxpayer provides more than one taxable service, he may make a single application stating therein all the services provided by him.