As a financial advisor, I can tell you what is Service Tax in India. In India, service tax is an indirect tax that is imposed on the provision of different services within the nation. The tax is assessed based on the price of the services and is normally incorporated into the total amount that the customer pays on their bill. In India, the current service tax rate is 15%.
Read on to learn more about the service tax.
What is the Meaning of Service Tax?
Service tax is a tax that is levied on any services delivered and gets collected from you, as part of the amount you are billed. According to section 65 of the Finance Act, it was declared in 1994 and is administered by the Central Board of Indirect Taxes and Customs.
Let’s understand the service tax meaning by an example. For instance, if you were seeking services from a hotel throughout your stay, the total cost of your bill would include service tax. The government then collects these charges from the hotel.
Get Assistance on Your Service Tax Payment via Experts on NoBroker.What is the Rate of Service Tax?
The finance ministry announces modifications to the service tax rates so that the government makes periodic adjustments to the financial budgets. The rate went up to 14% in 2015 and 15% in 2016.
Small service providers having a revenue below a specific threshold, as well as hospital, educational, and charity organisations, are free from service tax. You can get the entire list of services covered by service tax in the Finance Act of 1984 Section 65B (44).
You can visit the official CBIC website and use your taxpayer login to pay the service tax. The service tax is also an important source of income for the government which contributes a huge percentage of total tax collection.
I hope this helps you understand what is service tax.
Read more -How to Calculate Service Tax on Flat?
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Authors Of The Question
What is Service Tax?
Harith
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5 months
2024-05-28T06:01:31+00:00 2024-05-29T10:54:49+00:00Comment
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