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The concept
of service tax was first introduced in India in 1994, its scope has
gradually increased, in view of the revenue earning potential. The service
tax, that is indirect tax, has become a buzzword in the taxation laws and
envisaged as the tax of the future.
Applicability of the service tax :-
The service tax is payable on all the taxable service
rendered in India (except Jammu & Kashmir), whether to an Indian or foreign
client. However services rendered abroad shall not attract service tax
levies, as it extends only to services provided within India however
services have been classified with effect form 15.3.2005 which shall
determine their taxability in case the payment is received in convertible
foreign exchange. The rate of service tax is 10% ad Val Orem plus education
cess of 2% .
Provides
following service tax services for their service tax clients :-
Registration.
Record to be maintained and invoice.
Payment of service tax.
Classification of services.
Adjustment of excess service tax paid.
Credit of service tax paid.
Calculation Interest and penalty.
Notice and visit by departmental officer.
Assessment.
Revision and appeal.
Refund of tax. |
