Introduction: Service tax is a tax levied by the government on service providers on certain service transactions , but it is actually borne by the customers It is categorized under indirect tax and came into existence under the Finance Act, 1994 Impact of Service tax Hike: With the implementation of service tax hike, consumers would see a noticeable increase in their bill amounts when they purchase – electronic equipments, AC, railway tickets, cars, houses and movie tickets. Banking transactions phone bills and health and care services will become costlier with the imposition of the new tax. Manufacturers will be able to reprieve from the Krishi kalyan cess as it would be slightly lower from them. They will have rebates for cess paid on goods that are imported. Once GST comes into effect, all central and state level taxes and levies on all goods and services will be subsumed within an integrated tax having two components: a central GST and a state GST. This will ensure a complete comprehensive and continues mechanism of tax credits. The end consumer will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stage.

1. Presentation On
Tax Laws
Service Tax
Presented By
Ajit Majumder
ABMFT 1601
DEPTT OF ABMFT

2. Introduction
Service tax is a tax levied by the government on service
providers on certain service transactions , but it is
actually borne by the customers It is categorized
under indirect tax and came into existence under the
Finance Act, 1994

3. Service Tax for Financial Year
2016-17 and Assessment Year
2017-18
Recent Hike in Service Tax
The finance minister, Mr. Arun
Jaitley had brought in a proposal
during the union budget 2016 to
impose the Krishi Kalyan Cess on
all taxable services. The
recommended amount was at 0.5%
which would put the effective
service rate at 15%.

4. Calculation of Service tax
From 1st june 2016 , service tx is levied at 15%
of the value of taxable services under section 66
of the service tax act. The calculation of the
amount that can be levied is done as a
percentage of the charges paid or received for
the receipt or provision of services. However,
the tax need not compulsorily be levied on the
whole amount charged to the customer. Service
tax will be charged on the amount that does not
qualified for exemption.

5. Impact of Service tax Hike
With the implementation of service tax hike,
consumers would see a noticeable increase in
their bill amounts when they purchase –
electronic equipments, AC, railway tickets,
cars, houses and movie tickets. Banking
transactions phone bills and health and care
services will become costlier with the
imposition of the new tax.
Manufacturers will be able to reprieve from
the Krishi kalyan cess as it would be slightly
lower from them. They will have rebates for
cess paid on goods that are imported.

6. Documents required for new Service tax
registration
All the documents required for service tax
registration must be self attested copies. The
address n the individual’s driving licence/ voters ID/
Aadhar card will not usually be the same as the
business, so copies of utility bills can be used as
proof of busiess addressas they are accepted by the
State Service Tax Departments. PAN card is
compulsory for the legal entry of proprietor.
Service tax registration can be applied online on
website:
http://www.gov.in/STASE/vi/jsp/common/registerwit
hACES.do

7. What will happen to Service tax
if, GST is applied
 Currently, service tax is levied on services only, while
GST will be levied on both goods and services.
 Service tax is levied on all services except services
specified under negative list and exempt services.
Where as according to GST law, anything other than good
will be treated as services. Service tax was levied on
provisions of services while GST will be levied on supply
of services.
 In service tax, if a service provided by a supplier cross
Rs.9 lakhs then registration is mandatory and if the
services provided cross Rs10 lakhs, he must collect and
pay service tax. Where as in GST the turnover limit is
Rs.20 lakhs.
 In service tax, the rate is 15%, while in GST the rate of
tax might be 12 or 18%

8. Conclusion
Once GST come into effect, all central and state level
taxes and levies on all goods and services will be
subsumed within an integrated tax having two
components: a central GST and a state GST.
This will ensure a complete comprehensive and
continues mechanism of tax credits.
The end consumer will bear only the GST charged by the
last dealer in the supply chain, with set-off benefits at
all the previous stage.