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It is a tax which Is payable on services provided by the service provider This tax is payable by the service provider to the government Service provider can collect the entire amount by the consumer itself and pay to government
THE
COMMITTEE SUBMITTED ITS INTERIM REPORT IN 1991 AND FINAL REPORT IN 1993 COMMITTEE RECOMMENDED LEVY OF SERVICE TAX AT A NOMINAL RATE OF 5 PER CENT. ON THREE SERVICES, NAMELY, TELEPHONES, NON-LIFE INSURANCE AND STOCK BROKERAGE EXTENDED GRADUALLY IN THE SUBSEQUENT BUDGETS AND AT PRESENT MORE THAN 100 SERVICES BROUGHT UNDER SERVICE TAX NET
THE
COVERAGE
Advertising Agency Service Airport services ATM operation, maintenance or management services Banking/other financial services Chartered Accountants (practising) services Event management Service Legal consultancy services
State whether the following activities form a part of taxable service or not
1. Renting of land for educational purpose no 2. Hiring out space/stall at India travel exhibition yes 3. Professional service for conducting VAT audit by chartered accountant yes 4. A commission agent earning commission from The sale of sugarcane no 5. Contract of waterproofing of a building terrace yes
4,50,000
2,50,000
50,000
Fees received from M/s. T and L ltd. For imparting training to its employees Classroom coaching for std.9 students.
5,00,000
1,00,000
4,50,000
2,50,000
NIL 5,00,000 NIL 12,00,000 1,44,000 2,800 1,400 1,48,200
Commission on sale of goods belonging to clients Commission on after sales service provided to clients Commission on reserve bank of India for sale of property to them Commission on sale of tickets for IPL , organized by BCCI Commission on purchase and sale of Rice Commission from M/s. Jorka jhatka Ltd for the realization of payment made on their behalf Commission on canvassing advertisements for publishing Promotion of services provided by a goods transport agency
10 lakhs
1.Commission on sale of goods belonging to clients 2. Commission on after sales service provided to clients 3. Commission on reserve bank of India for sale of property to them 4. Commission on sale of tickets for IPL , organized by BCCI 5. Commission on purchase and sale of Rice 6. Commission from M/s. Jorka jhatka Ltd for the realization of payment made on their behalf 7. Commission on canvassing advertisements for publishing 8. Promotion of services provided by a goods transport agency Taxable service Service tax 12% EC 2% SHEC 1% Total service tax liability
43 5.16 0.1032
0.0516 5.3436