Head of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2012 one my friend B com graduate going to start Tax Consultancy Services and he wants know in which head of service tax he will be taxable.

BITTU SHARMA

BITTU SHARMA (Expert)
Follow

13 July 2012 I THINK THE HEAD OF SERVICES WILL BE CONSULTANCY SERVICES

Arun Gulati

Arun Gulati (Expert)
Follow

14 July 2012 now, with the introduction of taxation based on Negative list, category or heads of service are no more. Your friend has to charge 12.36% on invoice, if his taxable turnover exceeds 10 lakhs.

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2012 Thanks for giving reply but the thing is that in which head he is taxable? and if he is taxable as a consultancy services that means Legal Consultancy Services.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

27 July 2024 If your friend is starting a tax consultancy service, he will be subject to **Service Tax** under the relevant category of services provided. With the advent of GST, Service Tax has been replaced, but understanding the categorization under the old regime helps in understanding similar provisions under GST.

### **Head of Service Tax for Tax Consultancy Services**

1. **Service Tax Classification:**
- **Consultancy Services:** Under the Service Tax regime, the category under which **tax consultancy services** would fall is generally referred to as **"Consultancy Services"**.
- Specifically, tax consultancy services can be categorized under **"Management, Maintenance or Repair Services"** or **"Consulting Engineer Services"** in the context of indirect tax. However, with the introduction of GST, these are now classified differently.

2. **GST Classification:**
- Under GST, consultancy services, including tax consultancy, fall under the **"Professional, Technical, and Business Services"** category.
- The specific classification would be under **"Services by way of consultancy"**, which includes legal, accounting, and similar advisory services.

### **GST Classification for Tax Consultancy Services**

1. **GST Head:**
- **Service Code (HSN Code):** Under GST, tax consultancy services typically fall under the HSN code **"9982"** for **"Legal and accounting services"**.
- **GST Rate:** The standard rate of GST applicable to consultancy services is 18%.

### **Practical Steps for Your Friend**

1. **GST Registration:**
- **Obtain GST Registration:** If the turnover exceeds the threshold limit (Rs. 20 lakhs for most states or Rs. 10 lakhs for special category states), your friend will need to obtain GST registration.
- **Select the Appropriate Service Code:** When registering, he should select the service code under **"Professional, Technical, and Business Services"** and ensure accurate classification.

2. **Tax Invoice:**
- **Issue GST-compliant Invoices:** Invoices should reflect the applicable GST rate and include all necessary details as per GST regulations.

3. **File GST Returns:**
- **Monthly/Quarterly Returns:** Depending on the turnover and GST rules applicable, your friend will need to file GST returns regularly (monthly or quarterly).

4. **Maintain Records:**
- **Maintain Proper Records:** Ensure that all services provided, invoices issued, and GST collected are properly recorded and maintained for compliance and audit purposes.

### **Summary**

- **Under Service Tax (Pre-GST):** Tax consultancy services would fall under a broad category of consultancy services.
- **Under GST (Post-July 2017):** They are classified under **"Professional, Technical, and Business Services"** with HSN code **"9982"** and are subject to a GST rate of 18%.

Your friend should ensure compliance with the latest GST provisions and keep updated with any changes or clarifications issued by the GST authorities.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

John Ravindran Moses

ABHISHEK AGRAWAL

Prashant Kotecha

Sanjay Ratnani

Vinod Patil

Subscribe Now

Head of service tax

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA