1) Service tax is an indirect tax imposed by the Government of India on the provision of certain services. The current rate is 12.36% of the gross value of taxable services. 2) A wide range of services are covered under service tax including rail travel agents, tour operators, stock exchange services, internet and telecommunication services. 3) Service tax applies throughout India except the state of Jammu and Kashmir. If a service provider located in Jammu and Kashmir provides services outside the state, service tax is applicable.

1. S. Y. BAF
(IV SEMESTER)
TAXATION- II
INDIRECT TAXES

2. Roll No: 807

5. Service Tax
 Service tax was introduced in India for the first time in
1994.
 Service Tax is a tax imposed by Government Of
India on services provided in India.
 The current rate is 12.36% on gross value of the service

6. What is Service Tax ?
 Tax on Services.
 Not an profession
 It is an Indirect tax
 Service tax is a tax levied by the government on service providers
on certain service transactions, but is actually borne by the
customers. It is categorized under Indirect Tax and came into
existence under the Finance Act, 1994.

7. Service Tax Rate
Period
From 1.7.1994 to 13.05.2003
From 14.5.2003 to 09.09.2004
From 10.9.2004 to 17.04.2006
From 18.4.2006 to 10.05.2007
From 11.05.2007 to 24.02.2009
From 25.02.2009
Now At Present
Rate
5%
8%
10%
12.24%*
12.36%*
10.3%*
12.36%*
Inclusive of cess

8. List of Services Covered Under Service Tax
 There are some detailed list of taxable services viz. Rail
Travel Agents, Tour Operator, Stock Exchange
Services, Internet Telecommunication
Services, Telephone, Transportation of Air and so on.

10. Applicability
 Section 64 (1)Applicable to the whole of India except
Jammu & Kashmir.
 Thus any services provided within the territorial limits
of the state of Jammu & Kashmir are excluded from the
purview of levy of tax i.e. it will not attract service tax.

11. Contd……
 If the service provider is from Jammu & Kashmir and
the service is provided in any other state then the
service tax is attracted.
Service provider
Service Receiver
Applicability of
Service Tax
Inside J & K
Inside J & K
Not Applicable
Inside J & K
Outside J & K
Applicable
Outside J & K
Inside J & K
Not Applicable

12. Valuation Of Taxable Services
 Section 66 of the Finance Act, 1994 levis a charge of
charge of service tax on the “value of taxable services”
provided or to be provided.
 As per the provision of the section 67 of the Act, the
value of Taxable Services shall be the gross amount
charged by the services provider for services provided
or to be provided.

13. CENVAT Credit- Some Aspects
 CENVAT stands for Central Value Added Tax.
 CENVAT Credit Rules, 2004 are made effective from 10-09-
2004.
 These rules deal with both manufacturers and with
providers.
 The interest and penalty amounts cannot be taken as
credit

14. Import of Services
 Taxable services imported into India are liable to
services tax as per the provisions of Section 66A.
 Accordingly, where any taxable services is –
(a) provided or to be provided by a person who –
(I) has established a business or
(II) has a fixed establishment from where the
services is provided or to be provided

15. Contd………….
(b) received by a person who has his place of
business,
fixed establishment, permanent
address or usual place of residence in India.

16. Procedure under Service Tax
 Registration
 Application for registration is to be made by every
person liable for paying the Service Tax.
 In Form ST-1 within 30 days from the date on which
Service Tax is levied or within 30 days from the date of
commencement of business whichever is later, to the
Central Excise Officer having jurisdiction.

17. Contd……
• Any provider of taxable services whose aggregate value of
taxable service in a financial year exceeds Rs. 9 lacs, has to
get themselves registered.
Registration of
Service Tax

18. Payment
 Payment by Individuals, Proprietary concern and
Partnership Firms
Payable on amounts received during the
Quarter
Payable on or
before
1st April to 30th June
5th July
1st July to 30th September
5th October
1st October to 31st December
5th January
1st January to 31st March
31st March

19. Returns
The following returns have to be filled
As service provider/Receiver
For the Half year
To be filed on or before
1st April to 30th September
25th October
1st October to 31st March
25th April

20. Delay in Filing Return
Period of Delay
Penalty
Up to to 15 days
Rs. 500
16 to 30 days
Rs. 1000
Beyond 30 days
Rs.1000/- plus Rs.100/- per day from the 31st day
till date of filing return

21. Assessment
 The Act provides for the self-assessment by the
Assessee i.e. the assessee shall himself assess and pay
the tax.
 Thus every Assessee (Service Provider or Service
Receiver) has to himself assess his Service Tax
provide/paid and thereafter file returns in Form No.
ST-3 on Half yearly basis.

22. Thank you....