Service Tax

It is a form of indirect tax imposed on special services called taxable services. Service tax cannot be leived.



Objective:

Tax Rate in India

* 14th may 2003 - 5% to 8%

* From 10 sept 2004 - 10%

* 2006 - 7% to 12%

* 24th feb 2009 - 10%

* It was first brought in july 1994

Payment of Service Tax:

Rules:

* ST is payable on the value of taxable services charged.

* The due date for payment of ST is on or before 25th of the month immediately following the quarter when the value of taxable service is rendered.

Service in India taxable for service providers:

* Service provided to non-resident

* Service of insurance agents

* Service of agents of mutual funds

* Firms located in India reveiving sponsorship services