Shortest summary of service tax

Main ServicesProviderReceiver ServiceTaxed @ G.T.A3.09% Rail3.708% Vessel4.944% Air4.944% Shamiana8.652% Hotels7.416% Contructn3.090% Restaurants4.944% Tour opertr3.09% Credit prior to the registration can be availed after Registration ST can be paid from the credits of Excise/ST/CVD/SAD In case of Reverse Charge (w.e.f 01/10/2014): In case of advance payment :Date of Advance. In case payment is made within 3months of invoice date : Date of payment Payment not made within 3 months of invoice date: The date immidietly following the 3 months. Bill Issued before 1st Oct & payment after 1st Oct'14 : Payment made within 6 month :Date of payment Payment beyond 6 months: Service provider wale rules shall apply. Credits of Ecess/Shec cannot be used for ST but vica-versa can be done. ST + TDS example: Bill is 90,000 after deducting TDS of 10,000, then ST is on 100,000. Int. on late payment (Sec.75): Upto 6months : 18% 6-12months : 18% (1st six months) and then 24% (For the last six months). More than 12months : 18% (1st six months) and then 24% (For the last six months), then 30%. ST credit can be used for ST/Excise payments as both under C.Govt. & vice-versa Credit can be availed within 6 months from the date of invoice/bill. Section 70: Return Date is 25th April & 25th October Revision can be done by 90days Penalty for Non-filing (Sec.77): Upto 15 days: ₹500 15-30 days: ₹1000 Above 30 days: ₹100/day (max. 20,000) Cenvat Credit ST with VAT cannot Set off. SERVICE TAX in one page General Rate is 12.36% Point of Taxation Rules For Service Provider: Invoice issued within 30 days: Invoice date Invoice not issued within 30 days: Date of completion of service. Advance received before invoice or Completion of service: Date of advance. Section 68: Payments Payment due date is : For Co. : 5th/6th Of MONTH For others : 5th/6th of QUARTER March : 31st March W.e.f 1st Oct 14, ST must paid only thorugh epayment mode. TDS is charged on GROSS amount as well i.e 100,000 in above example. Section 69: Registration Apply within 30 days of exceeding 9L See books for Documents required Penalty of ₹10,000 or ₹200per day (Higher) for non registration. Charged on GROSS amount i.e Ignoring TDS/VAT/Other provisions. No ST in current yr. if Taxable services in PY is 10L or Less. ST should be charged on the invoice which increases the 10L limit. 4.944% (After Abat) 9.27% 12.36% Abatements Food supply4.944% Renting of MotorVec4.944% Director to Company Any Individual Director providing any Service to Any Company0% Not. 26/2012 Reverse Charge (Notification 30/2012) Provisions G.T.A Any Company/Partnership firm/Excise dealer paying any freight to Any Transport agency. (If Indivual/Huf are paying freight then GTA is liable to charge ST, not Indvual.huf) 0% 3.09% (After Abatment) 12.36% Other Important points 1. The liability of SReceiver is not discharged even if the Stax is charge by the SProvider in his bill. 2. Excess payment of ST can be adjusted against ST laibility in the succeding Month/quarter by fulfiling juts on condition that such excess should not be on the account of interpretation of law/taxability/exemptions.[Rule 6(4B)] 3. Where reciever is in the non-taxable territory, then Service provider is liable to pay service tax and not receiver. 4. Under Notifiation 25/2012, GTA can claim exemption of ₹1500 under the single contract.This exemption is also avaible in case of R.Charge. 5. ST paid under Reverse charge can be taken as Credit for the payment of ST as a provider or for the payment of excise duty. (Applicable only in case the Person paying ST under RC is also a service provider or manufacturer) 9Lakh is the limit for registration anytime Import of Service If Any Services are imported into India and provided to Any person in India (Eg. Processing charges paid to a Singapore bank for taking an ECB) 0%12.36% Any Individual/Firm of advocates providing services to Any person in business/profession whose turnover in the PY is more than 10Lac. Advocates Renting of Motor Vechile Any Individual/HUF/Firm providing rent a cab service to Any Company 0% 0% Supply of Manpower/ Security guard Any Individual/HUF/Firm Providing this service to Any Company3.09%