WHAT IS SERVICE TAX.
Service tax is a tax levied on the services. Service tax is on intangible items.Works contract is one where both goods and services are consumed, rather a mixed form of contract.
They are indivisible contracts comprising of both tangible and intangible contracts.
Power to levy service tax is with the Union Government under the Finance Act, 1994.
Position Under GST
1. GST won’t differentiate b/w tangible and intan
gible.2. A lump-sum to be charged on the revenue.3. Power to levy with both Central and State Government.4. The department of service tax and VAT shall merge, leading to a simplification of processand system.5. GST will lead to an end of Service tax.
Sec. 65 & 66 of the Finance Act, 1994 is the charging provision. They provide a complete listof services on which the tax is levied.Under GST also and there is a provision of an amendment to Finance Act, 1994 to do awaywith the inclusive list. Which will remove the bottlenecks of the classification of taxableservices.Rather a blanket provision has been proposed with the provisions for certain exclusionaryclauses.
Services are the taxable items for the service tax, provided in Sec 65 & 66 of the Finance Act,1994.
Raising of the bill or the payment whichever is earlier.
Service provider earning revenue beyond the threshold limit of Rs. 10,00,000.
Sec 69 read with Rule 4. There is prescribed performa which has to be furnished to theservice tax department alongwith the supporting documents and the prescribed fee.