SERVICE TAX

Contents 

 

Indirect Taxes ±Introduction Service Tax ±Levy Service Tax & Supply Chain Management

Indirect Taxes -Introduction 
Transaction taxes import / entry, manufacture and sale of goods and provision/ receipt of services. Can be passed on in the value chain. Directly impacts the cost of the goods or services and therefore are of paramount importance to the business . 



Service Tax.
‡Introduced in 1994 on 3 services ‡Now levied on 81 identified services ‡Generally payable by service provider, recipient liable in certain cases.

Base is likely to extend to over 150 services in future

Service Tax Rate, Base & Credit
Rate of service tax is 10.2% (including education cess). Computed on gross amount charged by the service provider after allowing available deductions like cost of material, etc Credit allowed of eligible input, capital goods & services

Relevant Service categories. 
           
‡Clearing & Forwarding agent¶s service ‡Custom House Agent¶s services ‡Port services ‡Business Auxiliary services ‡Manpower recruitment Agency¶s services ‡Storage & Warehousing service ‡Transport of Goods by Air / Road service ‡Transport of goods by pipelines/ other conduit ‡Packaging Activity services ‡Maintenance or Repair services ‡Franchise services ‡Intellectual property services ‡Erection, Commissioning or Installation services

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