Service Tax & Compliance Services
Service Tax has now become one of the major sources of yielding revenue to the exchequer. It has been extended to several items with enhanced rates. The rules and regulations and various procedures laid down under service tax are very cumbersome, tedious and best with the problem of interpretation , disputes and litigation all its provisions have to be completed with very strictly . Even minor lathes can land you in soup. The tax has to be deposited in treasury with in the stipulated period and various returns are to be filed on prescribed forms with in specified dates failing which return penal action in called for.
We have with us extensive experience in handling the demands of Service Tax Consultancy services that comprise areas like:
- Service Tax Registration
- Consultancy on Services as per the applicability of Service tax Act
- Filing of Service Tax returns in ST-3
- Consultancy on deposit of monthly service tax of corporate and individuals
- Maintenance of Service Tax Records
- Liasioning with respective Authorities
- Preparation of returns & challans
- Handling departmental audit
- Regarding credit claims
Here, our rich experience allows us to successfully handle all matters pertaining to services including handling of departmental audits. Working in close relation with client organizations, we analyze their needs and based on that perform execution of services, thus ensuring best possible service support is offered from our end. Some of the factors that distinguish us from others include:
- Rich experience in the field
- Capability to offer prompt and reliable services
Background of service tax
Background of service tax
- General rate 12% plus education cess of 2%, plus SAH education Cess 1% , making effective tax rate @12.36%.
- Tax is payable on all services excluding those in negative list.
- Service provided or agreed to be provided in the taxable territory.
Exemption and Negative List
Exemption and Negative List
Distinction between exemption and Negative List is that service in negative list is ‘service’ but not taxable at all. Exempted services are taxable but are exempted by Central Government by issue of a notification. Exemption can be changed easily but not Negative List. Activity excluded from definition of ‘service’ under section is not ‘service’ at all.
Reverse Charge (Tax Shift)
Reverse Charge (Tax Shift)
Normally, service tax is payable by person providing the service. Section 68(2) makes provision for reverse charge i.e. making person receiving the service liable to pay tax. Provision can be made that part of tax will be paid by service receiver and part by service provider.
Abatements and Composition under service tax
Abatements and Composition under service tax
Composition Schemes In some cases, finding of value of service is not easy e.g. sale or purchase of foreign exchange, air travel agent – in such cases, optional composition schemes provided. In case of composite contracts, e.g. construction, finding value of service is difficult. In such cases, optional composition schemes are available.
Abatement schemes In case of some services, abatement is available i.e. part of tax is exempted – e.g. 40% in case of air travel, 25% in case of GTA service, 40% in case of renting or hire of motor vehicle to carry passengers. Restrictions on Cenvat Credit. In some cases, abatement scheme is used as composition scheme.
Registration
Registration
Our emphasis is on ensuring strong control systems to minimize the risk of accidental or deliberate errors and omissions. Our objective is to ensure that resources of the organization are optimized to deliver maximum possible value. Stock audits include:
- Every person who has provided a taxable service of value exceeding Rs. 9 lakhs, in the preceding financial year, is
- Required to register with the Central Excise or Service Tax office having jurisdiction over the premises or office of such service provider.
- In case a recipient of services is liable to pay service tax he also has to obtain registration.
- The Input Service Distributors are also required to register.
- Every person who provides taxable service and is liable to pay service tax.
Return of Service Tax
Return of Service Tax
Return of Service Tax
ST-3 Return is required to be filed twice in a financial year – half yearly. Return for half year ending 30th September and 31st March are required to be filed by 25th October and 25th April, respectively.