Service Tax

Service tax in general means the gross amount received by the service provider for the taxable service rendered by him.Here service provider is the person who provides the taxable service on receipt of charges and is responsible for paying the Service tax to the Government. If the service provider is a Non Indian resident or who does not have any establishment in India, in that case the service receiver is liable to pay Service Tax. Service Tax is an indirect tax levy imposed under Chapter v of the Finance Act, 1994 as amended. The tax is applicable to services specified in the Section 65 & 66”.At present the rate of Service Tax is eight percent to be levied on the “value of taxable service”.

A. Registration is required:

(i) in relation to telecommunication service;

(ii) in relation to general insurance business;

(iii) in relation to insurance auxiliary service by an insurance agent; and

(iv) in relation to transport of goods by road in a goods carriage, where the consignor or consignee of goods-

    (a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

    (b) any company established by or under the Companies Act, 1956 (1 of 1956);

    (c) any corporation established by or under any law;

    (d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under  any law corresponding            to that Act in force in any part of India;

    (e) any co-operative society established by or under any law;

    (f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules                made thereunder; or

    (g) anybody corporate established, or a partnership firm registered, by or under any

(v) In relation to Business Auxiliary Service of distribution of mutual fund by a mutual fund distributer or an agent, as the case may be;

(vi) in relation to sponsorship service provided to any body corporate or firm located in India;

B. Any taxable service provided or to be provided