Prakriti KohliRoll number: 564K54

TYPES OF TAXES

IMPORTANCE OF SERVICE TAX LEVY

COVERAGE: SELECTIVE vs COMPREHENSIVE

• INDIRECT TAX: Source of revenue to the government in the form of indirect tax.

• NO SEPARATE ACT: Service tax is imposed by amending Chapter V of Finance Act, 1994.

• NO TAX DEDUCTION AT SOURCE: The service receiver does not deduct tax from the payment to the service provider and deposit it to the department.

• UNIFORM RATE: Currently it is 12.36% (12% service tax+2% EC+ 1% SHEC)• NOT APPLICABLE TO JAMMU AND KASHMIR• TAXABLE SERVICES: All services are taxable except those given under the

negative list.• SMALL SERVICE PROVIDER EXCLUDED: A limit of Rs. 10 lakh is set, up to

which value of all taxable services provided by a service provider during the current financial year is fully exempt from tax, provided in the last financial year the quantum of services provided by the service provider was Rs. 10 lakh (or less).

• VOLUNTARY COMPLIANCE: Reliance on collection of tax is primarily through voluntary compliance.

FEATURES OF SERVICE TAX

HISTORY OF SERVICE TAXIN INDIA

VITAL STATISTICS

ADMINISTRATION OF SERVICE TAX

DIRECTOR GENERAL