Service Tax

Tax Rate Abatments / Specific Exemptions Service Tax Compliance Registration Requirement How to make payment of Service Tax Categories of Services on Which Service Tax is Applicable. Service Tax Returns

Tax

Rate

At

Present

the

effective

rate

is

10.30%.

Registration

Requirement

Any person who provides taxable service to get himself registered with the central excise department within 30 days from the date of commencement of providing of taxable service. Each premises from where taxable service or services is provided to be registered but common registration may be permissible for all premises from where taxable services are provided. Taxable service provider should apply for registration to superintendent of central excise in the application form ST-1 along with follow documents Address proof of premises (Election I- card, Ration card, Telephone bill, Permanent Account Number) Incase of company memorandum and articles of association also required to be attached. Note: Penalty for Non Registration with in 30 days from the date of commencement of providing services Categories of Services on is which service tax is Rs1000/applicable.

Till date as many as 124 services have been covered under the act effectively. For ready reference details of the services in chronological order of their introduction is given below: Sl. No. 1994 1. 2. 3. Stock Broking Telephone General Insurance 01.07.94 01.07.94 01.07.94

Nature of services

Effective Date

1996 4. 5. 6. 1997 7. 8. 9. 10. 11. 12. 13. 1998 14. 15. 16. 17. 18. 19. 20 21 22. 23. 24. 2000 25. 26. 2001 27. 28. 29. 30. 31. 32. 33. Scientific and technical consultancy services Photography services Convention services Services provided to leased circuit line holders Telegraph services Telex services Facsimile (fax) services 16.07.2001 16.07.2001 16.07.2001 16.07.2001 16.07.2001 16.07.2001 16.07.2001 Tour Operator Rent-a-cab scheme operator 01.04.2000 01.04.2000 Architect Interior Decorator Management Consultant Practicing Chartered Accountant Practicing Cost Accountant Practicing company secretary Real Estate Agent Security Agency Credit Rating Agency Market Research Agency Underwriter 16.10.98 16.10.98 16.10.98 16.10.98 16.10.98 16.10.98 16.10.98 16.10.98 16.10.98 16.10.98 16.10.98 Consulting Engineer Custom House Agent Steamer Agent Clearing & Forwarding Agent Manpower Recruitment Agent Air Travel Agent Mandap Keeper 07.07.97 15.06.97 15.06.97 16.07.97 07.07.97 01.07.97 01.07.97 Pager Advertising Agency Courier 01.11.96 01.11.96 01.11.96

34. 35. 36. 37. 38. 39. 40. 41. 2002 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 2003 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 2004

On-line information and database access or retrieval services Videotape production services Sound recording services Broadcasting services Insurance auxiliary services Banking and other financial services Port services Authorized service stations for service or repair of motorcar or two wheeled motor vehicles.

16.07.2001 16.07.2001 16.07.2001 16.07.2001 16.07.2001 16.07.2001 16.07.2001 16.07.2001

Beauty treatment services Cargo handling services Cable services Dry cleaning services Event management Fashion designing Health and fitness services Life insurance business services Life insurance auxiliary services Rail travel agencies Storage and warehousing services

16.08.2002 16.08.2002 16.08.2002 16.08.2002 16.08.2002 16.08.2002 16.08.2002 16.08.2002 16.08.2002 16.08.2002 16.08.2002

Commercial training or coaching Erection, commissioning & installation Technical testing and analysis. Technical inspection and certification Maintenance and repair service Business auxiliary service Internet Caf Franchise services Banking and other financial services rendered by a foreign exchange broker/dealer Port services provided by other ports Repairs and services of light motor vehicles by authorized service station

01.07.2003 01.07.2003 01.07.2003 01.07.2003 01.07.2003 01.07.2003 01.07.2003 01.07.2003 01.07.2003 01.07.2003 01.07.2003

64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 2005 77.

Air port service Business exhibition services Construction, repair, alteration, restoration or similar services in respect of commercial or industrial building and civil structures Forward contract services Intellectual property services, other than copy right Opinion poll Outdoor caterer Pandal or Shamiana Contractor Programme Producer Survey and exploration of minerals Transport of goods by air Transport of goods by road Travel agents (other than air/rail travel agents

10.09.2004 10.09.2004 10.09.2004 10.09.2004 10.09.2004 10.09.2004 10.09.2004 10.09.2004

10.09.2004 10.09.2004, but actual levy from 1-12005 10.09.2004

Cleaning services other than in relation to agriculture, horticulture, animal husbandry or dairying Construction of residential complexes having more than twelve residential houses or apartments together with common areas and other appurtenances Dredging services of rivers, ports, harbors, backwater and estuaries Mailing list compilation and mailing; and Membership of Clubs or Association (religious forum, political organizations will be excluded Packaging services Site preparation and clearance, excavation, earth moving and demolition services, other than those provided to agriculture, irrigation and watershed development Survey and map making other than by Government Department Transport of goods through pipeline or other conduit

16.06.2005

78.

16.06.2005

79. 80. 81. 82. 83. 84. 85. 2006 86 87 88 89

16.06.2005 16.06.2005 16.06.2005 16.06.2005 16.06.2005 16.06.2005 16.06.2005

Service provided by a Registrar to an Issue Service provided by a Share Transfer Agent Automated Teller Machine operations, maintenance of management Service provided by a recovery agent

01-05-2006 01-05-2006 01-05-2006 01-05-2006

90 91 92 93 94 95 96 97 98 99 100 2007 101 102 103 104 105 106 107 2008 109 110 111 112 2009 113 114

Sale of space or time for advertisement, other than in print media

01-05-2006

Sponsorship services provided to any body corporate or firm, other 01-05-2006 than sponsorship of sports events Transport of passengers embarking on international journey by air, 01-05-2006 other than economy class passengers Transport of goods in containers by rail by any person, other than Government railway Business support services Auctioneers service, other than auction of property under directions or orders of a court of law or auction by the Central Government Public relations service Ship management service Internet telephone service Transport of persons by cruise ship Credit card, debit card, charge or other payment card related services 01-05-2006 01-05-2006 01-05-2006 01-05-2006 01-05-2006 01-05-2006 01-05-2006 01-05-2006 01-06-2006 Renting of Immovable Property Services Mining Services Asset Management Services Design Services Development and supply of content services Services in Execution of Works Contract 107 Telecommunication services 01-06-2006 01-06-2006 01-06-2006 01-06-2006 01-06-2006 01-06-2006 01-06-2006

Information Technology Software Services Management of Investment under ULIP Stock Exchange Services Supply of Tangible Goods for use in India

16-05-2008 16-05-2008 16-05-2008 16-05-2008

Transport of goods by rail, Transport of : Coastal goods; or Goods through national waterway; Goods through Inland water Service in relation to Cosmetic surgery or Plastic surgery Services in relation to Advice, Consultancy or assistance in any

1-09-2009 1-09-2009 1-09-2009 1-09-2009 1-09-2009 1-09-2009

115 116

branch of law, provided by any business entity not being an individual 2010 117 118 119 120 121 122 123 124 Promotion, marketing or organizing game of chance including lottery Health Services Maintenance of Medical Records of the employees Promotion of a brand of goods, service, event, endorsement of name Permitting commercial use of exploitation of any event Services in relation to copyrights Services in relation to copyrights Special Services provided by a builder or any other person to a buyer

Small

Services

Providers

:-

Small units whose turnover is less than Rs 10 lakhs per annum are exempt from service tax. But they are required to get themselves registered with Service Tax Authorities once their turnover exceed Rs.9 Lakh during the financial year. Exemption is available, even if turnover crosses Rs.10 Lakh in current financial year, assessee need not have to pay taxes till Rs.10 Lakh and he will be liable to pay service tax only on turnover exceeding Rs.10 Lakh. However, if turnover exceeds Rs.10 Lakhs, there would be no exemption of Rs.10 Lakh in the next financial year.

Name of Service (i) Mandap Keeper (ii) Tour Operator a. In respect of package tour. b. In the relation to booking of accommodation only. c. In respect of tour other than package tour. (iii) Erection, Commissioning or installation (iv) Custom House Agents (v) Rent a Cab Operator (vi) Convention Services (vii) Commercial or Industrial Construction Services (viii) Outdoor catering Services

Abatement / deduction 40%

Taxable 60%

75% 90% 60% 67% 85% 60% 40% 67% 50%

25% 10% 40% 33% 15% 40% 60% 33% 50%

(ix) Pandal or Shamiana Contractor (x) Transport of goods by Road; (xi) Complex Construction Services (x) Transport of goods in container by Rail.

30% 75%; 67% 70%

70% 25% 33% 30%

The above exemptions are subject to following two conditions :y The assessee has not availed CENVAT Credit. y The assessee has not availed benefit of notification 12/2003 which exempts so much of the value of all the taxable services, as is equal to the value of goods and materials sold by the service provider to the Services Services International How Agencies to to provided and make supplies to recipient UN of Agencies/SEZ to SEZ or of UN developer are service. : and exempt. tax

payment

service

Every person, who is the provider of taxable service, is liable to pay service tax. Incase of any person who is use service of non-resident service provider then the user of service is liable to pay service tax instead of service provider.

Any payments received in advance also liable to pay service tax. The service tax should be deposited in the specified bank through challan Form GAR-7.

Due date for payment of Service Tax to the A/c of Government can be summarized as under :- For Company :- Monthly liability. Deposit tax so collected by 5th of next month. For month of march deposit by 31st March. For other than Company :- Quarterly liability. Deposit by 5th of month next to the end of quarter. For month of quarter ended 31st March deposit by 31st March. Quarter ended on 30th June 30th September 31st December 31st March Due Date for payment of Service Tax 5th July 5th October 5th January 31st March

NOTE :-Due Date of Payment is 6th of month, if the duty is deposited electronically through internet banking. y 25th April for half year ended October to March and y 25th October for half year April to September

Service

Tax

Compliance

Service Tax has now become one of the major sources of yielding revenue to the exchequer. It has been extended to several items with enhanced rates in recent budgets. It's scope is very much likely to be widened and rates to be raised further. The rules and regulations and various procedures laid down under service Tax are very cumbersome, tedious and best with the problem of interpretation , disputes and litigation all its provisions have to be completed with very strictly . Even a minor lathes can land you in soup . The tax has to be deposited in treasury with in the stipulated period and various returns are to be filed on prescribed forms us and with feel in specified to dates your failing which to return enhance penal your action business in or called for. We have specially trained staff to handle the entire Service Tax work you may entrust this burden on free focus attention profession.

Compliance Services Offer y Getting yourself registered with Service Tax Authorities. y Filing of Service Tax Returns. y E-Filing of Service Tax Returns. y Consultancy on Service Tax Matters. y Maintenance of Service Tax Records. y Service Liaison with Tax Service Tax Authorities. Return

Every taxable service provider has to file return within prescribed Form ST-3. If a person provides more than one services, separate ST-3 for each services to be filed. The due dates for service tax returns are: 1. 25th April for half year October to March. 2. 25th October for half year April to September. Provided that the total amount payable as late fee shall not exceed the amount of Rs. 2000/We have specially trained staff to handle the entire Service Tax work you may entrust this burden on us and feel free to focus your attention to enhance your business or profession.