In this case, the service provider pays the tax and recovers it from the customer. Service Tax was earlier levied on a specified list of services, but in the 2012 budget, its scope was increased. Services provided by air-conditioned restaurants and short term accommodation provided by hotels, inns, etc. were also included in the list of services. It is charged to the individual service providers on cash basis, and to companies on accrual basis. This tax is payable only when the value of services provided in a financial year is more than Rs 10 lakh. This tax is not applicable in the state of Jammu & Kashmir.

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

2. MAURYA RAKESH R.
ROLL NO. 63

5. Service tax was introduced in India for the
first time in 1994.
Service Tax is a imposed by Government Of
India on service provided in India.
The current is rate is 14% on gross value of
the service

6. Tax on service
Not an profression
It is an Indirect tax
Service tax is a tax levied by the government
on service providers on cretain service
transactions, but is actually borne by the
customers. It is categorized under Indirect
Tax and came into existence under the
Finace Act, 1994.

7. PERIOD RATE
FROM 1.7.94 TO 13.5.03 5%
FROM 14.5.03 TO 9.9.04 8%
FROM 10.0.04 TO 17.4.06 10%
FROM 18.4.06 TO 10.5.07 12.24%
FROM 11.5.07 TO 24.2.09 12.36%
FROM 25.2.09 10.3%
NOW AT PRESENT 14%
Inclusize of cess

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

9. Section 64 (1) Applicabe to the whole of
India except JAMMU and KASHMIR.
Thus any services provided within the
territorial limites of the state of JAMMU
and KASHMIR are excluded from the
purview of levy of tax i.e. it will not attract
service tax.

10. Section 66 of the Finace Act, 1994 levis a
charge of charge of service tax on the
“value of taxable services” proviede or to
be provided.
As per the provision of the section 67 of
the Act, the value by the services shall be
the gross amount charged by the services
provider for service provided or to be
provided.

11. Cenvat stands for central value added tax.
Cenvat credit rules,2004 are made
effective from 10-09-2004
These rule deals with both manufacture
and with proviedrs.
The intrest and penalty amount cannot be
taken as credit

12. REGISTRATION:
Application for registration is to be made
by every person liable for paying the
service tax.
In form ST-1 within 30 daysfrom the date
on which services tax is levied or within
30days from the date of commencement of
bussiness whichever is later,to the central
excise officer having jurisdiction.

13. 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

14. The followimg 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

15. Period for delay Penalty
Upto to 15 days Rs.500
16 to 30 days Rs.1000
Beyond 30 days Rs.1000/-per day from the 31st days till
date of filing return

16. The act provider 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 return in Form no. ST-3 on Half yearly
basis.