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Service tax computation

suvranil satpati (Accountant) (41 Points)

01 April 2016

Dear All,

Can you please suggest the computation of SERVICE TAX???Is ity like VAT (Output Tax in a month - Input Tax in a month ) or else something else..Also by which date should it be paid every month...Interest calculation if any??? Need assistance ....

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16 Replies

Lalan Prasad (Student CA IPC / IPCC) (43 Points)
Replied 01 April 2016

You can claime the input amount within 6 month

Ankita CWA Final Student (Principle Internal Auditor) (348 Points)
Replied 01 April 2016

1 charge service tax only on amt of service provided

for e.g AMT IS XXX

+ 14%st on XXX

+ 0.5% SB CESS ON XXX

TOTAL BILL AMT = XXX+14.5 *XXX

2 YOU HAVE TO PAY IT EVERY MONTH BEFORE 6TH OF NEXT MONTH IN CASE OF PVT LTD CO AND QUARTERLY IN CASE OF PRATNESHIP FIRM OR PROPRITORSHIP

3 YOU CAN TAKE CREDIT OF SERVICE TAX PAID BY U ON INPUT SERVICES

4 SB CESS IS NOT COVERED UNDER CENVET RULE

ONE HAVE TO PAY IT TO GOV , CAN NOT ADJUST AGAINST ANY OTHER TAX

2 Like

Sandeep Katyal (45 Points)
Replied 01 April 2016

SB Cess is also a part of cenvet credit

Rahul Tyagi (Account Manager) (29 Points)
Replied 01 April 2016

SB would be charge on which amount ???? On taxable amount or on 14% Tax amount ??? I read in newspaper that service tax increase and reached on 15%. Is this true ??? Please reply .....

Ankita CWA Final Student (Principle Internal Auditor) (348 Points)
Replied 01 April 2016

ON TAXABLE AMT

YES ST IS INCRESESD FROM 14 TO 14.5%

Dayal (Gen. Manager - Indirect Taxation) (3431 Points)
Replied 01 April 2016

cenvat credit is not eligible for cenvat Rate of service tax is 14% Swach Bharat Cess 0.50%

Dayal (Gen. Manager - Indirect Taxation) (3431 Points)
Replied 01 April 2016

cenvat credit is not eligible for Swach Bharat Cess

Ashok J (CA Final) (880 Points)
Replied 01 April 2016

Is der any notification which says u cant claim input credit of sb cess

(Guest)

Rahul tyagi ji... Service tax is increased to 14 to 14.5% w.e.f 15-11-2015 as swachh bharat cess and it is further increased by 0.5% w.e.f 01-06-2016 it is amenment by finance Bill 2016..this is khirshi kalyan cess.. Now w.e.f 01-06-2016 service tax becomes 15% in total... So bifurgation is that Assesable value xxx Service tax 14% on assesable value xxx Swacch bharat cess 0.5 % on assessable value Krishi kalyan cess 0.5% on assessable value Total bill amount. Xxx

Dayal (Gen. Manager - Indirect Taxation) (3431 Points)
Replied 02 April 2016

Yes there is a clarification to the effect that SBC cannot be claimed as Cenvat refer cenvat credit rules as amended post SBC

Dayal (Gen. Manager - Indirect Taxation) (3431 Points)
Replied 02 April 2016

Yes there is a clarification to the effect that SBC cannot be claimed as Cenvat refer cenvat credit rules as amended post SBC

Vaibhav (student) (68 Points)
Replied 02 April 2016

what is the penalty for late payment of service tax?

Rakhi Arora (Student CMA) (38 Points)
Replied 02 April 2016

Service tax is 14%, SB cess is 0.5% & Krishi Kalyan cess is 0.5% which is leviable from 01-06-2016

MAYUR BIYANI (Assistant Manager-Taxation & Accounts) (142 Points)
Replied 03 April 2016

SB cess input cannot be taken.it has to be expensed out.u can check notification in november time at cbec for further refrence.
and also ST is increasing to 15% but wil come into force from 1.06.2016 due to introduction of krishi kalyan cess @ 0.5% for which input credit is available.
u can also check latest 2016 finance bill where introduction of krishi kalyan cess is there, where it specificaly given u cannot claim cenvat on SB cess.