Author: CA Tarannum Khatri

service tax e payment easy steps

service tax e payment notification : As per notification number 9/2014 of service tax, with effect from 1st october, 2014, every assessee has to pay service tax electronically. So now it is mandatory to pay service tax online. The assessee can pay service tax by any other mode than internet banking with permission of assistant commissioner or deputy commissioner of Central Excise. (download notification no. 9/2014 from end of the post) Due date of service tax e payment: Last date of service tax e payment is 6th of following month when service is provided.For the month of march, last...

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Online tds payment

The CBDT has extended due date (last date) for payment of TDS for the month of September, 2014. Today is the last date. TDS can be paid by offline or you can do online TDS payment.   How to make online tds payment? If you have software for tds return, there is no much worry because software gives all facilities from tds calculation to tds payment and filling of tds return. If you don’t have, no need to worry. You can do e payment of tds very easily.   Due date for payment of tds: TDS deducted during the...

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Current service tax rate chart for year 2014-15

Presenting current service tax rate chart for year 2014-15. You can find service tax rate chart 2015-16 with amended rate 14% here.- LINK. The new rate is applicable from june 1, 2015. Service tax is indirect tax levied on service provided. Service tax is charged at various rates due to availability of exemptions and abatements on various services. Use this chart to decide service tax rate applicable to you. There is change in service tax rate from 12.36% to 14% in budget 2015-16. Read following posts,  budget highlights: service tax  When will new service tax rate 14% be applicable?...

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New stipend rate for CA students

Good news for CA students.. Finally ICAI has opened its eyes towards lower stipend received by CA students. On 10th september, 2014, ICAI has proposed to increase the stipend of CA students. This is the new table in regulation no. 48 of the chartered accountant regulations, 1988.   Place of service of articled assistant During 1st year of training During 2nd year of training During remaining period of training Cities having population of 20 lacks or more Rs. 2000 Rs. 2500 Rs. 3000 Cities having population of 4 lacks and above but less than 20 lacks Rs. 1500 Rs. 2000 Rs. 2500 Cities having population of less than 4 lacks Rs. 1000 Rs. 1500 Rs. 2000 Explanation: No stipend will be payable for excess leave. For the purpose of population, population figure should be taken from the last published census report of india. If student has worked from more than one principal CA, he can add period of previous CA for calculating stipend limit....

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Reverse charge mechanism in service tax ( RCM)

Reverse charge mechanism in service tax  ( RCM) (section 68 (2) ) has been introduced  with effect from 1/7/2012. With its introduction, service receiver is also liable to file return and pay service tax on the portion of service tax. Motive of this change is mainly more tax compliance and increase tax revenue but it is giving hardship to service receiver as if your liability for payment of service tax under reverse charge is small amount like Rs. 1000 or Rs. 100, you have to get registration under service tax act and pay service tax and file return.But rules are rules and we have to follow it. Applicability of reverse charge mechanism in service tax ( RCM): Not all service receiver  are liable to pay service tax under reverse charge. Only on receiving specific services , reverse charge mechanism is applicable. Is service receiver paying extra service tax due to reverse charge mechanism? No, amount of service tax payment is remained the same but liability to pay tax to government is apportioned between service receiver and service provider. Example OF RCM:   If work contractor has rendered services and charged bill of Rs. 100000. Service tax liability is Rs. 1,00,000*14%*70%  = 9800. (30% abatement) Suppose service receiver is liable to pay 50% of service tax under reverse charge mechanism. which is 4900 ( 9800/2). Service provider will charge bill...

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