Category: service tax

Point of taxation rules ( POT rules) : The ultimate guide with example

Service tax rate is changed from 12.36% to 14%. To determine service tax liability on or after change of rate, point of taxation rules of service tax plays the main role. We all know that service tax should be paid by 6th of following month when service is deemed to provided.So which rule decides when is service deemed to be provided? of course, POT rules. Point of taxation rules use: It decides taxable event date and due date of payment of service tax. As per rule 6(1) of service tax rules, service tax shall be deemed to paid to...

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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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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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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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Accountant can not be held liable for short payment of service tax.

M/S Mahisagar Welding works VS. CCI Ahmedabad Court: West zonal bench at ahmedabad court-III   Appeal No. : ST/328/2012 -SM   Appearance: For assessee: Shri vipul Khandar , Chartered Accountants For revenue: Shri GP thomus, A.R.   Brief: There was short payment of service tax by forging in duty paying challan. Appellant had appealed that accountant was responsible for this act act and assessee should not be held liable. Final order was passed that assessee can’t held liable to any other person, acting as his agent, responsible for his willful wrong act or fraud. Details: The assessee has filed appeal against order passed by Additional commissioner , Ahmedabad III. Shri Vipul Khandar , appearing on behalf of appellant argued that delay in payment of service tax is due to Accountant of assessee who had not deposited service tax in time and had forged in figures of service tax payment challan. The shortfall was made good by depositing service tax with interest. Interest was paid after issue of show cause notice. Mr Khandar also argued that penalty should not be levied in this case. He Relied upon following case for non levy of penalty: CBEC Circular No. 137/167/2006 -CX 4. date 3/10/2007 and Bajaj Travels LTD vs. CST. It was also argued that if the above arguement was not accepted then both penalty cannot be invoked  u/s 76 and 78...

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