Category: Service Tax

Service Tax Returns

Every assessee has to submit half yearly return in form ST-3 in triplicate within 25 days of the end of the half-year. ‘Half year’ means 1st April to 30th September and 1st October to 31st March of financial year. The return should be accompanied by TR-6/GAR-7 challans, evidencing payment of duty. Details in respect of

Payment of Service Tax

The due date of service tax payment 5th of the month following the month (6th in case of e-payment) in which payments are received toward value of taxable services [rule 6(1) of Service Tax Rules]. Thus, service tax is not payable on basis of amounts charged in the bills/invoice, but only on amounts actually received during

Invoice by Service Provider under the Service tax act

Assessee should prepare invoice in respect of his services. The Invoice should be prepared within 14 days from date of completion of taxable service or receipt of payment towards the value of taxable service, whichever is earlier. 4.7.1 Details required to be shown in invoice/bill/challan – As per rule 4A(1), the invoice/challan/ Bill should be

Abatement Rates on various services

In case of some services e.g. catering services, mandap keeper services and construction Services, service tax is payable at lower rates, i.e. partial abatement is available from gross value, vide 1/2006-ST dated 1-3-2006. The  lower rate is applicable if the service provider does not avail Cenvat credit of duty/tax on inputs, input services and capital

Services provided within SEZ

Services provided to SEZ unit or SEZ developer for consumption within SEZ are exempt [Notification No. 4/2004-ST dated 31-3-2004 in respect of SEZ]. The wording of notification is such that services consumed within the zone are alone exempt. Thus services provided outside SEZ (e.g. customs clearance, transport etc.) are not exempt. Taxable services provided to

Small service providers

The small service providers whose turnover of taxable services from one or more premises did not exceed ten lakhs in 2012-13 will be exempt from service tax in next financial year i.e. in 2013-14 upto the turnover of ten lakhs. The provisions are prescribed in Notification No. 6/ 2005-ST dated 1-3-2005 (The exemption limit was

Exemptions from Service Tax

Service tax can be partially or totally exempted by issuing an ‘exemption notification’u/s 93 of Finance Act, 1994 by the Central Government . Exemption may be conditional or unconditional. The only limitation is that exemption cannot be granted by Central Government with retrospective effect. There are following general exemptions – Small service providers – Small

Inclusion and Exclusion in Service Tax

Reimbursement of expenses or ‘Out of pocket’ expenses- The service provider often claims reimbursement of certain expenses incurred by him (like travelling, boarding and lodging, etc.) while providing a taxable service. These are often termed as ‘out of pocket’ expenses. These are really charges for taxable services and are includible. Reimbursement of expenses incurred on


Section 67 of Finance Act, 1994 contains provisions for valuation of taxable services for charging service tax.The highlights of provisions of section 67 as effective from 18-4-2006 are as follows – • Service tax is payable on gross amount charged by service provider for service provided or ‘to be provided’. Thus, tax is payable as

Person liable to pay Service tax

In most of the cases, service provider, i.e. person who is providing taxable service is liable to pay service tax. However, in few cases, exceptions have been made and service receiver is made liable to pay service tax. Theprovision that service receiver is liable to pay service tax is termed as ‘Reverse Charge’. The exceptions