Author: CA Tarannum Khatri

Service tax rate chart for fy 2016-17 : with new service tax rate 15%

Service tax rate from 1st June, 2016 is 15% with krishi kalyan cess. I have given here service tax rate chart for FY 2016-17 to describe rate on various services with abatement and reverse charge mechanism – updated with budget 2016 changes. ( Service tax will be replaced with GST from 1st July, 2017. Know latest gst rate here) Note: Budget 2016 has increased service tax rate from 14.5% to 15% by levying Krishi Kalyan Cess at 0.5% . This change will be effective from 1st June, 2016. Till that you can use chart given below to decide service tax rate.    Service tax rate chart for fy 2016-17 with new service tax rate 15%:(applicable from 1/6/2016- with krishi kalyan cess) Service provided Amount( 1) Abatement rate or Exemption rate( 2) Value after abatement( 3=1-2) Service tax payable (3*15%) Effective rate to be charged on bill*( 4) =15%-abatement rate Conditions to be followed to claim abatement or exemption Tour operator service   Accommodation booking 10,000 90% 1000 150 1.50% No cenvat credit for input, input services or capital goods.Invoice includes amount of accommodation. tour (other than above) * 10,000 70% 3000 450 4.50% No cenvat credit for input, input services or capital goods. Transport of goods by rail by person other than Indian railway 10.000 60% 4000 600 6% No cenvat credit for input, capital goods. cenvat credit on input services are...

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Section 44AD ( presumptive taxation): The ultimate guide

Section 44AD provides special provisions to compute business profit at presumptive basis. Section 44AD has five sub section. Understanding of each one is necessary.Section 44AD is used many assessee while showing business profit. If you are one of them, please read carefully the important points about section 44AD applicability. Definition of section 44AD as per income tax act, 1961:   Before understanding full section 44AD, let’s read the definition of section 44AD: Section 44AD ( 1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business,...

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New service tax rate 14% will be effective from 1st June,2015

Budget 2015 made big change in service tax rate.New service tax rate 14% will be applicable from 1st June, 2015. New service tax rate 14% applicability: Please note that No education cess will be levied with new rate. Old rate is 12.36% with education cess and new rate is 14%. ( No need to add education cess on it). Swachh Bharat Cess 2%: Swachh Bharat cess 2% will be added to all or any services. The date to levy additional swachh Bharat Cess has not been notified yet. Service tax rate and abatement: There are few changes in abatement rate. You can find changes in this article. Budget 2015 changes in service tax. How to calculate service tax and charge in bill? It is simple. You can replace 12.36% with 14%. Swachh Bharat cess effective from 15/11/2015: Please note that swachh bharat cess will be effective from 15/11/2015. The rate of swachh bharat cess is 0.5%. So effective rate of service tax is 14.5%. I have prepared service tax rate chart for fy 2015-16 .Also go with POT rules for better understanding. REad from the following link Service tax rate chart 2015-16. Point of taxation rules : IN easy manner If you have any query ask in comment below. Share this post on social media by clicking button on left side.  ...

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CMA data preparation for loan : 5 Things to know

CMA data preparation  and presentation is necessary for bank loan or working capital loan or for seeking CC limit . Do you know what is CMA data? Why the banks require it? What are the components of it? What is benefits of presenting CMA data? To answer all these questions, I have written this post. CMA data preparation for bank loan: 5 Important things to know CMA data meaning: Full form of CMA data is Credit Monitoring Arrangement data. It is the report to be presented to bank to show your past financial history, current financial position and future...

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NRI taxation in India : 7 important rules to know

NRI taxation in India is governed by NRI income tax rules. Non residential indian should know seven income tax rules before deciding taxability of income earned by him in India. In this article, you will get knowledge and understanding of these points. 7 Income tax rules for  NRI taxation in India: Introduction to the Basic Taxation structure NRI and its interpretation(s), etc. Residential Status of NRI Categories of Income & Liability to Tax Slab Rates Applicable to NRI. Double Tax Avoidance Agreements. Advanced implications also relevant for NRI’s – TDS rates for NRI Introduction: The Central Board of Direct...

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