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Readers ask: Services tax in india?

What is service tax in India with example?

2009 the rate of service tax is 10% on gross value of the taxable service plus 2% Education Cess on the service tax amount and 1% Secondary Higher Education Cess on the service tax amount. Example : Suppose the value of taxable service is Rs. 100. Service tax @10% will be Rs.

Is service tax included in GST?

The single GST subsumed several taxes and levies, which included central excise duty, services tax , additional customs duty, surcharges, state-level value added tax and Octroi. GST is levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and/or services .

Is service tax applicable now?

2016 Union budget of India has proposed to impose a cess, called the Krishi Kalyan Cess, at 0.5% on all taxable services effective from 1 June 2016. The current service tax is at 15%. A tax of 0.5% would be levied over and above the Service Tax and Swachh Bharat Cess. Till 31 May 2016, the Service Tax rate was 14.5%.

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What is the GST rate for services in India?

The GST rate in India for various goods and services is divided under 4 slabs; these are 5% GST, 12% GST, 18% GST, and 28% GST.

Is service tax and GST same?

Service tax was levied on “provision of services ” while GST will be levied on supply of services . Krishna: Arjuna, in Service tax the rate is 15%, while in GST the rate of tax on services might be 12% or 18%. The rate of tax on Services will be defined according to the Service Accounting Code.

Who is liable for service tax?

Person liable to pay service tax The tax is normally payable by the service provider. However law empowers the Government to notify a person other than the service provider to pay the service tax .. In some of the cases liability of payment of service tax has been shifted to the service provider.

Who is the father of GST?

A single common ‘Goods and Services Tax (GST)’ was proposed and given a go-ahead in 1999 during a meeting between the then Prime Minister Atal Bihari Vajpayee and his economic advisory panel, which included three former RBI governors IG Patel, Bimal Jalan and C Rangarajan.

What are the 3 types of GST?

Know about the types of GST in India Highlights. CGST, SGST and IGST are the 3 types of GST in India. CGST and SGST are levied on intra-state transactions. CGST is collected by the centre and SGST by the state. IGST is charged on inter-state goods/services transactions.

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What services are exempt from GST?

Some examples of GST /HST exempt goods and services are: Used residential housing ( GST /HST is only charged on new or “substantially renovated” residential housing. Residential rental accommodation if equal to or greater than one month duration. Music lessons.

What is the penalty for not paying service tax?

PENALTY FOR FAILURE TO PAY SERVICE TAX : Section 76 of the Finance Act, 1994 deals with the case of penalty for failure to pay or delay in the payment of service tax . The penalty contemplated is Rs. 100/- per day of default or interest of 1% per month computed on daily basis, whichever is higher.

Can restaurants charge service tax and GST?

Restaurants , tax experts seek clarity on applicability Technically GST can be levied on service charge , if it is part of the total bill, as rules make it clear that any fee or charge , until exempted, will be taxable. However, the problem is with the legal character of service charge .

What is the GST on service charge?

In the GST regime, the Service Tax and VAT amount will be subsumed into one single rate, but you may still find service charge doing rounds on your food bill. So, at a standard rate of 18% under GST, a consumer will save around Rs. 55 on a transaction value of Rs. 2,200 .

How is GST calculated?

GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18% , then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs. 1,180.

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What is GST full detail?

GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. Under the GST regime, the tax is levied at every point of sale. In the case of intra-state sales, Central GST and State GST are charged.

What are the 4 slabs of GST?

GST Rates for Goods The government has proposed a 4 -tier tax structure for all goods and services under the slabs – 5%, 12%, 18% and 28%. After the recent revision of GST rates, these are the commodities that fall under the four tax slabs along with those that do not attract any tax.

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