swachh bharat is service tax discuss the basics of service tax in india.
swachh bharat is service tax discuss the basics of service tax in india.
what is service tax discuss the basics of service tax in india?
swachh bharat
it is a tax levied on services provided in india, except the state of jammu and kashmir. the responsibility of collecting the tax lies with the central board of excise and customs (cbec). from 2012, service tax is imposed on all services, except those which are specifically exempted under law(e.g. exempt under negative list, exempt as exclusion from service definition as per service tax, exempt under men(mega exemption notification)). in budget presented for 2008-2009, it was announced that all small service providers whose turnover does not exceed need not pay service tax. service tax at a rate of 14 percent(inclusive of ec & shec) will be imposed on all applicable services from 1 june 2015. from 15 november 2015, swacch bharat cess of 0.5% has been added to all taxable service leading the new service tax rate to be 14.5 percent (inclusive of ec, shec & swacch bharat cess). on 29 february 2016, current finance minister mr. arun jaitley announces a new cess, krishi kalyan cess that would be levied from 1 june 2016 at the rate of 0.5% on all taxable services. the purpose of introducing krishi kalyan cess is to improve agriculture activities and welfare of indian farmers. thus, the new service tax rate would be 15% incorporating ec, shec, swachh bharat cess and krishi kalyan cess.
taxation in india
service tax was a tax levied by the central government of india on services provided or agreed to be provided excluding services covered under negative list and considering the place of provision of services rules, 2012 and collected as per point of taxation rules, 2011 from the person liable to pay service tax. person liable to pay service tax is governed by service tax rules, 1994 he may be service provider or service receiver or any other person made so liable. it is an indirect tax wherein the service provider collects the tax on services from service receiver and pays the same to government of india. few services are presently exempt in public interest via mega exemption notification 25/2012-st as amended up to date and few services are charged service tax at abated rate as per notification no. 26/2012-st as amended up to date. presently from 1 june 2016, service tax rate has been increased to consolidated rate at 14% +0.5%+0.5%= 15% of value of services provided or to be provided. the service tax rate now is consolidated rate as education cess and secondary higher education cess are subsumed with 2% of "swach bharat cess(0.50%)" has been notified by the government.
service tax