Saliq Ansari
(CA_Final Student)
(885 Points)
Replied 31 March 2016
Could you be more specific while asking query this will help others in understanding your query and give a good reply to your query.
Service Tax is an Indirect tax levied on services of a Service Provider, (applicable to service Provider who has cross the limit of 10 lacs)
The Service Provider has to Charge and Collect Service tax over and above the amount of Services PRovided by him and the amount so collected is to be paid on every 6th of next month.
venkata krishna reddy
(chartered accountant)
(792 Points)
Replied 01 April 2016
When Hitachi manufactures Air Conditioners, they exploit a lot of natural resources - including water, air, noise pollution. This creates problems for the society. As a compensation for this, they pay tax. However, they sell those ACs to a restaurant, and recover the tax from it. That restaurant charges this tax to you. Ultimately, the cost of that tax on AC was borne by the consumer. Why?
If you are using the AC, you need to bear the cost as well.
Remember, that AC is manufactured FOR YOU!
To summarise -
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