Asha Kanta Sharma (Manager - Finance & Accounts) 28 September 2021
By default the service provider will collect the GST na dpay the same to the Govt
Vikasanand Gupta 28 September 2021
Asha Kanta Sharma (Manager - Finance & Accounts) 30 September 2021
Hi Vikasanand Gupta - I probably overlooked the "Pre GST" wordings here.
The following services have been notified under Sec.68(2) of Finance Act,1994:
A. the services,-
(i) in relation to telecommunication service;
(ii) in relation to general insurance business;
(iii) in relation to insurance auxiliary service by an insurance agent; and
(iv) in relation to transport of goods by road in a goods carriage, where the consignor or consignee of goods-
(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);
(b) any company established by or under the Companies Act, 1956 (1 of 1956);
(c) any corporation established by or under any law;
(d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India;
(e) any co-operative society established by or under any law;
(f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; or
(g) anybody corporate established, or a partnership firm registered, by or under any
(v) In relation to Business Auxiliary Service of distribution of mutual fund by a mutual fund distributer or an agent, as the case may be;
(vi) in relation to sponsorship service provided to any body corporate or firm located in India;
( Sec. 68(2) of Finance Act,1994, Notification 36/2004-S.T. dated 31.12.2004 as amended)
In the following situations, the liability to pay service tax is as follows :
(a) the Director General of Posts and Telegraphs,
(b) the Chairman-cum-Managing Director, Mahanagar Telephone Nigam Ltd, Delhi, a company registered under the Companies Act
(c) any other person who has been granted a license by the Central Government.
( Rule 2(d) of Service Tax Rules, 1994)
1.2 From 01.06.2007 to 23.02.2009, the Service tax was payable @ 12% of the 'gross amount' plus 2% Education Cess on service tax plus 1% Secondary Higher Education Cess on service tax i.e totaling to 12.36% ( in specific cases partial deductions are allowed, refer section 67 of the Finance Act) charged by the service provider for providing such taxable service. From 24.02.2009, vide Notification No.8/2009-ST dated 24.02.2009 the rate of service tax is 10% on gross value of the taxable service plus 2% Education Cess on the service tax amount and 1% Secondary Higher Education Cess on the service tax amount.
Example: Suppose the value of taxable service is Rs.100. Service tax @ 10% will be Rs.10 and Education Cess @ 2% of the Service Tax will be Rs.0.20 and Secondary & Higher Education Cess @ 1% of the service tax will be 0.10.