Category: service tax

25 Service tax changes applicable from 1st April 2016

Service tax changes applicable from 1st April 2016 due to budget 2016 are summarized in this article.The article provides knowledge about change in exemptions, abatement, reverse charge mechanism and service tax rules from 1/4/2016. 25 Service tax changes applicable from 1st April 2016: Change in Exemptions from 1st april, 2016: Exemption to senior advocate in respect of service to advocate or to partnership of advocates and a person represented on an arbitral tribunal to an arbitral tribunal is being withdrawn from 1st April, 2016. Service tax should be charged in bill under forward charges and paid to government. Exemption...

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Union Budget 2016-17: Service tax Highlights

Union Budget 2016-17 has been declared and brought changes in service tax regime. Here  is the service tax highlights of union budget 2016 speech. Read and understand major changes in service tax brought by Budget 2016-17. Union Budget 2016-17 : Service tax highlights Service tax rate hike from 14.5% to 15%  due to “Krishi Kalyan Cess-0.5%” Levy: There is no direct change in service tax rate but With effect from 1st June, 2016, Krishi Kalyan Cess will be levied on any or all the taxable services at the rate of 0.5% on the value of such taxable services. Input...

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Tax on rent income as per income tax and service tax

Rental income is taxable from the point of view of income tax and service tax. Many times tax payers forget to include or consider rental income while showing income. I have discussed rental income treatment as per income tax and service tax view in this article. You will also get insights about TDS on rent. Tax on rent income under various tax laws: Income tax on rent income: For income tax purpose, we can divide rent income from two sources: Rent income from building or land appurtenant to it. Rent income from land ( no building attached) and other...

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TDS on Service tax : No more confusion

No TDS on service tax on payments made/ due to resident payee if service tax component is indicated separately in the agreement/ contract. Supporting decision about NO TDS on service tax : In the recent verdict of the Hon’bleRajasthan High Court, the Commissioner of Income Tax (TDS), Jaipur Vs. M/s. Rajasthan UrbanInfrastructure held that if the terms and conditions of the agreementbetween the payer and the payee has already been agreed for, the amount of service tax will be paid separately and not to be included in the fees forprofessional services or technical services, than no TDS isrequired to...

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Service tax code verification online in 3 simple steps

Service tax code verification can be done online using simple 3 steps. It is helpful to determine the genuineness of the party whom we are paying service tax. Here, we have explained the manner of verification of service tax number and basics of service tax number. SERVICE TAX CODE VERIFICATION online: Why service tax number verification is important? If we are working with someone in the area of service and we take some services from such persons who provide the same service which we required but how we know about that whether the Service Tax Code Number Provide or...

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