Service Tax

Service Tax

What is Service Tax ?

Service Tax is a tax payable to the Government by Service providers on certain service transactions but is actually borne by the customers. A person liable to pay Service Tax and came into existence under a part of Finance Act, 1994. It is categorized under Indirect Tax and Central Board of Excise and Customs (CBEC) has the responsibility of collecting the levy in different states in India. It is not imposed in the state of Jammu & Kashmir. Service Tax is collected by the Government after consuming the taxable services provided by Travelling Agencies, Consultancy Services, Hotels, Restaurant and food services, Cab Services etc.

What is the current service tax rate?

Service Tax was introduced in the year 1994. Presently, the service tax rate is 14%. This rate is applicable since June 2015. Service tax is supposed to be paid quarterly or monthly.Some of the following services that possess Service Tax in India:

Airport Services
Automobile Services
Banking & Financial Services
Beauty Parlour
Business Support Services
Cargo & Shipping Services
Chartered Accountant
Cleaning Services
Consultancy Services
Courier Services
Credit or Debit card Services
Design Services
Dry Cleaning Services
Electronic Services
Event Managment Services
Export-Import Service
Franchise Services
Health Club & Fitness Centre
Human Resource Services
Immigration Services
Insurance Services
Internet & Telephone Services
Maintenance & Repair Services
Passport Services
Postal Services
Real Estate Consultant
Security Agency
Storage & Warehousing Services
Telecommunication Services
Tourist Services
Traveling Agencies