Service tax in India

1. Prakriti Kohli
Roll number: 564
K54

5. • INDIRECT TAX: Source of revenue to the government in the form of
indirect tax.
• NO SEPARATE ACT: Service tax is imposed by amending Chapter V of
Finance Act, 1994.
• NO TAX DEDUCTION AT SOURCE: The service receiver does not
deduct tax from the payment to the service provider and deposit it
to the department.
• UNIFORM RATE: Currently it is 12.36% (12% service tax+2% EC+ 1%
SHEC)
• NOT APPLICABLE TO JAMMU AND KASHMIR
• TAXABLE SERVICES: All services are taxable except those given under
the negative list.
• SMALL SERVICE PROVIDER EXCLUDED: A limit of Rs. 10 lakh is set,
up to which value of all taxable services provided by a service
provider during the current financial year is fully exempt from tax,
provided in the last financial year the quantum of services provided
by the service provider was Rs. 10 lakh (or less).
• VOLUNTARY COMPLIANCE: Reliance on collection of tax is primarily
through voluntary compliance.