Wages on Service Tax applicable

128 views 1 replies
If I am service tax registered person and I am receiving wages.is am liable to pay service tax?
Replies (1)

Service tax is not applicable on wages.

Key Points:

  • Abolition of Service Tax: Service tax was abolished in India on July 1, 2017, when it was replaced by the Goods and Services Tax (GST) regime. Any legacy queries regarding service tax refer to a period that is no longer active.

  • Employer-Employee Relationship: Under the Finance Act, 1994 (which governed service tax), services provided by an employee to an employer in the course of employment were specifically excluded from the definition of "service." Therefore, salary or wages received by an employee were never subject to service tax.

  • Current Tax Context: If you are an individual earning income in the form of salary or wages, this is governed under the Income Tax Act, not by indirect taxes like GST or the erstwhile service tax.


Summary: Service tax is no longer in effect and was never applicable to wages or salary, as these fall under an employer-employee relationship and are excluded from the definition of taxable services. Your income may be subject to Income Tax, but it is not liable for service tax (or GST).

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 15 July 2026
CA Articles

Kinjal H Shah & Co.

Mumbai

CA Foundation

View Details
Company
23 July 2026
CA Inter

Vikram Jadhav and Company

Pune

CA Inter

View Details
Company
06 July 2026
Senior Accountant

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
11 July 2026
CA semi qualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details