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What exactly is service tax and how it is realized?

Date: 03 Mar 2016    Group: Finance and Investments    Category: Tax Planning   

We often read in news papers about increase in services taxes. What exactly is service tax and how it is realized? How many services are covered under service taxes? Is it distributed among union Government and the respective state Governments? What are the consequences of not paying service tax?
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Author: [Anonymous]    04 Mar 2016      Member Level: Silver     Points : 3  (Rs 3)    Voting Score: 0

Service tax was started by the govt. in 1994 following the Finance Act, 1994. It is imposed on a specified list of services which are taxable under section 65 of the finance act, 1994. Service tax is basically tax collected by the govt. of India on services (Conceptually it is parallel to sales tax- As sales tax is imposed on goods such as tv, vehicles, refrigerator, furniture etc etc, similarly service tax is tax on services such as mobile telephony, event management services, etc etc).

There is a set procedure of assessing and filing service tax returns (like any other tax) by both individual assesses and corporates. If not complied with, there are provisions of penalties made under sections 76, 77, and 78 of Finance act, 1994. Service tax is appropriated between centre and state.

Author: [Anonymous]    04 Mar 2016      Member Level: Diamond     Points : 1  (Rs 1)    Voting Score: 0

Service tax is a central government tax and it is applicable to all kind of services like providing software, courier services, clearing services, healthcare services and many more.
To pay service and fill the challan, the time and rules vary for different types of firms and they turn overs.

Author: Mahesh    05 Mar 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

Service tax is basically the tax allotted on the process in which the workmanship is taxed. That is the most simple way to understand the service tax. So the service can be of any type which requires constant maintenance, consulting and the time investment.

Service tax is charged differently in different type of industries. For example one type of service may be priced at 14% whereas the another maybe at say 5%. This way you can see the service tax has different implication on variety of the services.

Most of the service tax applies on every type of the service and the product. And you can even find the service tax applied within the government offering too. This way the tax collection becomes more stronger.

Author: Anilkumar    11 May 2016      Member Level: Silver     Points : 2  (Rs 2)    Voting Score: 0

1. Service tax is indirect tax.
2. Service tax is highest revenue to Government.
3. Service tax collected from service provider or one parson give service to another person like telecommunication, providing technical service, consultation etc.
4. Service tax rate is 14.5%, 14% is Service tax and 0.5% is Swach Bharat Abhiyan.

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