Service Tax Compliance & Assistance

Service Tax Compliance & Assistance

Need for Service tax Compliance and Assistance

Service tax is, as the name suggests, a tax on Services. It is a tax levied on theservices specified by the Central Government under theFinance Act, 1994. It is an indirect tax (akin to Excise Duty or Sales Tax) which means that normally, the service provider pays the tax and recovers the amount from the recipient of taxable service.

The Growth story of service tax as a revenue collection tool of the Central Government is absolutely breathtaking. In a span of 20 years from the year 1994-95 the collection of service tax has risen from a mere Rs. 410 Crores to Rs. 97509 crores in the year 2012-13 showing tremendous growth in revenue collection and also the wide spread applicability of the same.

For Service Provider

Every person providing services for consideration whose value of service exceeds `.10 lacs is required to collect the service tax and make the compliance.

For Service Receiver

And now a day if you are specified person and taking the specified services then being service receiver you are also liable to pay service tax which is popularly called as “Reverse Charge Mechanism (RCM)”.And there is no `. 10 lacs exemption available to such service receiver.

How our Service can Assist

  • Transaction structuring and planning for Service Provider
  • Transaction structuring and planning for Service Receiver to avoid RCM
  • Design and Implement the account system so to derive the tax data easily
  • Registration (including Centralized Registration)
  • Filing of half Yearly Returns
  • Handling Service tax Audits
  • Compliance to Show Cause Notice

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Useful Charts