What is VCES Scheme in service tax?
Service Tax Voluntary Compliance Encouragement Scheme, 2013 provides you with a golden opportunity to pay all your ‘tax dues’ from the period 01.10.2007 to 31.12.2012 without interest, penalty and other legal proceedings including prosecution.
Can service tax interest be waived?
Service Tax Penalty Relaxation after Order However, under the new provision, 75% of the penalty can be waived, if service tax payment and interest due is paid within 30 days of order. In case of fraud, 75% of the penalty can be waived, if service tax payment, interest due 25% penalty is paid within 30 days of order.
What is service tax rate in India?
Service tax is charged at the rate of 15% currently. The taxability arises once the value of services exceeds Rs. 10 lakhs during the financial year. It is very important to identify the place of service provision as the tax is levied on services rendered in taxable territory.
What is the rate of service tax?
15%
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.
Are consulting services taxable?
If you do consulting work for three or four companies, they will all report your earnings to the IRS. As such, you need to do your part. If you earn less than $400, you won’t owe the IRS any tax. That being said, you should still file a return for the tax year, to stay on the safe side!
What is the current rate of service tax in India in 2020?
The rate of Service Tax was 15% whereas the rate of GST is 18%.
How do I calculate service tax?
2009 the rate of service tax is 10% on gross value of the taxable service plus 2% Education Cess on the service tax amount and 1% Secondary Higher Education Cess on the service tax amount. Example: Suppose the value of taxable service is Rs. 100. Service tax @10% will be Rs.
What is the tax rate for consulting services?
As an independent consultant you are considered self-employed, so if you earn more than $400 for the year, the IRS expects you to pay your own tax. The self-employment tax rate is 15.3% of your net earnings.
Why was Central Excise and service tax scheme introduced?
The scheme has been introduced with an intention to reduce the pending litigation and covers disputes under Central Excise, Service Tax and specified Cesses including Education Cess, Krishi Kalyan Cess and Swachh Bharat Cess etc. “An area that concerns me is that we have huge pending litigations from pre-GST regime.
When to use the service tax waiver scheme?
“The scheme is likely to be used more for cases where demand is less vis-a-vis the relative cost of litigation and interest, and also where assesse believes that the case is weak on merits. Thus, the need of the hour is to quickly analyze the pending litigation and decide upon cases that can be applied for under the scheme,” adds Singh.
How is serial number assigned in VCEs Register?
(d) While making entries in the VCES register, the VCES cell shall enter the Declarations in a serial order and the particular serial number allotted to the Declaration shall form the basis of assigning the number to the Declaration.
How is LDS different from other tax waiver schemes?
This scheme is different from past various schemes such as Voluntary Compliance Encouragement Scheme (VCES) since earlier only interest and penalty was waived, LDS is, however, offering waiver of the tax itself along with interest, penalty and prosecution. So should you go for it? However, there are some open issues that need further clarification.