Our Service Tax preparation services help clients prepare all the required documents to be filled. We also provide guidance to clients for the service tax registration. With our service tax services we make the whole system of service tax of India seem easy for the clients.
Service Tax is tax leviable on services reled to Service Tax Planners,Service Tax Advisors, Service Tax Consultants, Service Tax Solutions which are covered under the Act and provided by any type of assessee.
The responsibility of collecting the tax lies with the Central Board of Excise and Customs(CBEC). The office of Director General (Service Tax) has been formed in the year 1997 to monitor the collection and assessment of service tax.
Every year more and more services have been brought under the net of Service Tax. The current list includes:
1) Telephone, (2) Stockbroker, (3) General Insurance. (4) Advertising agencies, (5) Courier agencies, (6) Radio pager services.
The services provided by goods transport operators, out door caterers and pandal shamiana contractors was abolished vide Notification No.49/98, 2nd June,1998.
(27) Scientific and technical consultancy services, (28) Photography, (29) Convention, (30) Telegraph, (31) Telex, (32) Facsimile (fax), (33) Online information and database access or retrieval, (34) Video-tape production, (35) Sound recording, (36) Broadcasting, (37) Insurance auxiliary activity, (38) Banking and other financial services, (39) Port, (40) Authorised Service Stations, (41) Leased circuits Services, (42) Auxiliary services to life insurance, (43) Cargo handling, (44) Storage and warehousing services, (45) Event Management, (46) Cable operators,(47) Beauty parlours, (48) Health and fitness centres,(49) Fashion designer,(50) Rail travel agents, (51) Dry cleaning services, (52). Commercial vocational institute, coaching centres and private tutorials, (53) Technical testing and analysis (excluding health & diagnostic testing) technical inspection and certification service, (54) Maintenance & repair services, (55) Commission and Installation Services, (56) Business auxiliary services, namely business promotion and Support services (excluding on information technology services), (57) Internet café, (58) Franchise Services
(59) Transport of goods by road (earlier Goods Transport Operators service re-introduced), (60) Out door Caterer’s service (re-introduced), (61) Pandal or Shamiana service (re-introduced), (62) Airport Services, (63) Transport of Goods by Air Services, (64) Business Exhibition Services, (65) Construction Services in relation to Commercial or Industrial BuildingConstruction Services in relation to Commercial or Industrial Building, (66) Intellectual Property Services, (67) Opinion Poll Services, (68) TV or Radio Programme Services, (69) Survey and Exploration of Minerals Services, (70) Travel Agent’s Services other than Rail and Air travel agents, (71) Forward Contract Services, (72) Transport of goods through pipe line or other conduit Services, (73) Site preparation & clearance Services, (74) Dredging Services, (75) Survey & Mapmaking Services, (76) Cleaning Services, (77) Membership of Clubs & Associations, (78) Packaging Services, (79) Mailing list compilation & Mailing Services, (80) Construction Services in relation to Residential Complexes
Penal provisions do exist in respect of Service Tax also. Failure to obtain registrations, failure to pay the tax, failure to furnish the prescribed returns, suppression of the correct value of the taxable services and failure to comply with notice do attract penal provisions as prescribed. But, it is specifically provided that no penalty is imposable on the assessee for any of the above failures, if the assessee proves that there was reasonable cause for the failure. This provision has been inserted to take care of the genuine difficulties of the new assessees.
Relief to Housing Societies. The central governments has notified to levy service tax (applicable from April 1, 2007) on only those societies where the maintenance charges paid by members of society exceeds Rs 3000 per month and the overall gross collection of the society is more than Rs. 8 lakhs per annum. Thus if the society collects less than Rs. 3000 per month or its total collection is less than Rs. 10 lakhs (applicable from 1.4.2008), then it does not collect service tax.
Rate of Service Tax & Service Tax Exemption amount
The rate of service tax is 12.36% (including 3% education cess). However, if your turnover for last year was less than Rs. 10 lacs (applicable from 1.4.2008; previous to this the limit was Rs. 8 lacs) you don't collect the service tax. That is only if your turnover is over 10 lacs, you must collect service tax. The service tax is payable to the government on the amount realized or received. That is the liability to pay the service tax is not based on the total billing amount.
Payment Due Dates
(a) Individuals or Proprietary Concerns and Partnership Firm. Service tax is to be paid on quarterly basis. The due date for payment of service tax is the 5th of the month immediately following the respective quarter. (Quarters are : April to June, July to September, October to December and January to March). However, payment for the last quarter i.e. January to March is required to be made by 31st of March itself.
(b) Other category of service providers. Service tax is to be paid on a monthly basis, by the 5th of the following month. However, payment for the month of March is required to be made by 31st of March itself.
Sevice Tax Forms. To apply for service tax number, you must use Form 1. You must have PAN to apply. Half yearly return is filed on Form ST-3. The due date for April - Sept return is 25th october and for October - March return is 25th april.
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