Who is responsible for service tax in India?
the service provider
05. 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.
Who introduced service tax?
Manmohan Singh
When Manmohan Singh introduced service tax at a meagre 5 per cent while presenting the 1994-95 Budget, little did he know that it would become one of the biggest sources of revenue for the government in the years to come.
How much is the service tax 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.
Who is exempt from service tax?
Any service that is provided or offered free of cost is exempt from service tax. Taxable services that are provided to diplomats and their family members for official purposes are exempt from service tax.
Is service tax still applicable in India?
So, as per law, Service Tax has been phased out by GST and customers are not supposed to pay it. However, the Service Charge is still applicable.
What was the Service Tax rate in 2014?
The rate of Service Tax was increased from 12.36% to an all inclusive, flat 14%, which included Subsuming Education Cess and Secondary & Higher Secondary Education Cess.
What is the Service Tax in 2017?
15%
The recommended amount was at the rate of 0.5%, which put the effective service tax rate at 15%. Note: Service Tax has been replaced by the Goods and Services Tax (GST) starting 1 July 2017.
What are the types of service tax?
As per the newly implemented tax system, there are 4 different types of GST:
- Integrated Goods and Services Tax (IGST)
- State Goods and Services Tax (SGST)
- Central Goods and Services Tax (CGST)
- Union Territory Goods and Services Tax (UTGST)