Service Tax Procedure & Refund

Service tax is an indirect tax which is levied upon the taxable services defined u/s 66B of finance act 1994. Generally the service provider is liable to collect the service tax from service receiver and deposit the same to the central govt. account this account is administered by the Central Excise Department. Generally service provider is liable to deposit service tax to central govt. but in some circumstances service receiver is liable to deposit such tax to central govt. which is popularly known as reverse charge mechanism.

What does service means?

‘Service’ has been defined and means -any activity for consideration carried out by a person for another excluding services under negative list but includes a declared service. The said definition further provides that ‘Service’ does not include

  • Any activity that constitutes only a transfer in title of goods or immovable property by way of sale, gift or in any other manner or
  • A transfer, delivery or supply of goods which is deemed to be a sale of goods within the meaning of clause (29A) of article 366 of the Constitution.
  • A service provided by an employee to an employer in the course of the employment.
  • Fees payable to a court or a tribunal set up under a law for the time being in force.
  • A transaction only in money or actionable claim.

To determine whether you are a “service” provider or not ask following question to yourself

  • Am I doing any activity for another person?
  • Am I doing such activity for any consideration?
  • Whether such activity consists of transfer of goods or immovable property?
  • Is such an activity in the nature of a service provided by an employee of such person in the course of employment?
  • Does this activity consist only of a transaction in money or actionable claim?

Once a person indulges in providing taxable services and his turnover exceeds Rs. One million during any financial year he must have to register himself under service tax department.

Rate of service tax:

At present, the effective rate of Service tax is 15%. The above rate comprises of Service tax @ 14% inclusive of ESHC, Swacch Bharat Abhiyan @ 0.5% and Krishi Kalyan Cess @ 0.5%.

Interest and penalties for non compliance of service tax rules and regulations:

What A Yadav & Associates Offers

With a very extensive experience in service tax online services, we are adept in this field. We have been rendering our services in the following area:

  • Service tax audit,
  • Registration under Service tax,
    1. We provide assistance in getting registered with service tax department, collecting of all data required for filling form ST-1
  • Preparation and filing Returns.
    1. Assistance in filing of returns as per the relevant provisions of the service tax law: Preparation of service tax returns on half yearly basis ( to become monthly soon);
  • Consultancy for maintenance of proper records and proper accounting.
  • Assisting in computation of service tax payable
    1. Assistance in computation of tax payable as per the relevant provisions in the service tax laws.
    2. Assisting in collating the data for output (including data for payment of service tax under reverse charge basis) and input services (month wise) for computation of tax liability;
    3. Examining and calculating set off / input tax credit to calculate the tax liability
      Consultancy on various issues relating to Service Tax.
  • Assistance with respect to Assessment proceedings
    1. Presenting the client before various authorities,
    2. collating information and preparation of Assessment files;
    3. Review and analyzing the assessment order issued by department,
  • Compilation of data of Cenvat credit.
  • Assistance in availment of notified Abatements.
  • Utilization and availment of service tax credit in accordance with the Service Tax Credit Rules, 2002.
  • Identify gaps and / or areas of improvements, if any and suggest indicative solutions;
  • Depth study of the business operation to explore the avenues to improve tax efficiency
  • Verify other commercial agreements and expenditure schedules including expenditure in foreign currency to flag the additional service tax liability if any under the new service tax regime;

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