What is an example of service tax?
Service tax is a type of indirect Tax that you are liable to pay to the government once you. The consumer pays the service tax to the service provider while paying the bill (for example, your restaurant bill has a component of service tax). The government in turn collects the tax from the service providers.
What is the service tax on flat purchase?
In other words Service Tax @ 3.75% (25% of 15%) is levied on the total price paid for the purchase of an under construction property. The Budget 2013 brought in an amendment to the above provisions and reduced the abatement from 75% to 70% for flats above 2000 sq. feet (Carpet Area) or costing Rs. 1 Crore and above.
What is the service tax of meaning?
Definition: Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. This tax is payable only when the value of services provided in a financial year is more than Rs 10 lakh. …
What is service tax on rent?
Service tax at 12.36 % is liable to be paid if the total amount received by your landlord from one or more sources during the year exceeds Rs. 10 lakhs. To avail TDS on rent, The receiver of the rent shall give his pan card details to the person paying the rent.
Who is eligible for service tax?
Although Service Tax is required to be paid only when the aggregate value of services provided exceeds Rs. 10 Lakhs in a financial year, the service tax provider is required to apply for Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs.
Is it compulsory to pay service tax?
Service Tax, on the other hand, is payable to the Government. However, many customers are confusing service charge with service tax and questioning the restaurants on why they need to pay this extra amount after the implementation of GST. Some restaurants have made it compulsory for customers to pay the service charge.
Who will pay service tax builder or buyer?
The 2010-11 budget imposed service tax on all under-construction properties from July 1, 2010. Now, according to the Service Tax Act [Section 65(105)], the developer or builder of an under-construction property has to pay service tax when he sells a property to a buyer.
How do you calculate service tax?
The amount of tax that can be levied is calculated as a percentage of the charges received/paid for the provision/receipt of services. Service tax is levied at the rate of 15% of the value of taxable services. However, one cannot impose service tax on the entire amount charged to the customer.
How much is the service tax?
From the 1st of June 2016, service tax is levied at 15% of the value of taxable services under Section 66 of the Service Tax Act. The 15% includes 0.5% Krishi Kalyan Cess and 0.5% Swach Bharat Cess.
What is service tax and features?
Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994.
How is your service tax exempt?
When revenue is Rs 10lakhs or less – If the total Revenue you earn from freelancing work is Rs 10lakhs or less, Service Tax rules do not apply. You will be exempt from collecting and paying service tax on your services. Here Revenue means your total receipts from your clients.
Is rent a good or service?
It depends on the source of the Rental Income. If you rent out a property to third parties and provide no personal services (like a hotel does), the income is reported on Schedule E as Rental Income. This income is not subject to self-employment taxes, as rental activity is not considered a “business.”
Is GST applicable for rent?
What is the effect of GST on rent? When you rent out a residential property for residential purposes, it is exempt from GST. Any other type of lease or renting out of immovable property for business would attract GST at 18%, as it would be treated as a supply of service.
What is negative list under service tax?
Negative List of Service Tax: Under Section 66D of the Finance Act 1994, a negative list of services have been outlined, which are deemed to be exempt from service tax. Any service provided that does not come under the purview of this list is liable to be levied with service tax.