Friday, January 7, 2011

An Introduction To Service Tax By : Nidheesh Fca





"Service to human beings is service to product."
The term service means that the act of serving to or doing
work for one more or for a community etc.
therefore its stands for help or profit given to somebody.
tho' commonly for rendering such service bound payment is formed however it's not thus altogether the cases.
the number charged for such service is that the remuneration of the person providing such service.
If we glance back, tax on services isn't new as we've got been paying taxes on services in past conjointly within the variety of luxury tax, diversion tax, expenditure tax, amusement tax, gambling tax, business tax, interest tax etc.

Need for Service Tax

In any state, it's the prime responsibility of the govt to meet the increasing biological process wants of the country and its folks by method of public expenditure. Bharat being a developing economy is attempt to meet the obligations of a state among its restricted resources. The Government's primary sources of revenue area unit direct and indirect taxes.

Central Excise Duty on {the product|the products} factory-made / created in {india|India|Republic of Bharat|Bharat|Asian country|Asian nation} and Customs Duties on foreign goods represent the 2 major sources of indirect taxes in India. however revenue receipts from Customs & Excise aren't keeping pace with the expansion in economy to international organisation commitments and rationalization of artifact duties.

it's conjointly renowned that services represent a bigger proportion of the consumption of the wealthy instead of of the poor because the demand for services is income-elastic. counting on the socio-economic compulsions, every country evolved a taxation system on services adopting either a comprehensive approach or a selective approach.

whereas most of the developed countries tax all the services with only a few and restricted exemptions, a number of the developing countries tax choose services solely. Bharat has adopted a selective approach to taxation of services.
Introduction of Service Tax in Bharat
Dr. Manmohan Singh, the then Union minister, in his Budget speech for the year 1994-95 introduced the new idea of Service Tax and expressed that

Service Tax had been levied on the recommendations created in early 1990's by the Tax Reforms Committee headed by Dr.Raja Chelliah. The Committee realized that the indirect taxes at the Central level ought to be generally neutral in relevance production and consumption of products and will, in course of your time cowl commodities and services. The Committee felt that we must always move towards full-fledged worth supplemental Tax (VAT) system covering services and commodities.

Service tax should be a region of VAT at the central level. it had been envisaged that because the central excise duties on product would get step by step reworked into a worth supplemental tax at the producing level, service tax would get woven into that system. Therefore, a tax might be levied on services that enter into the productive method. The Committee emphasised the importance of moving towards VAT, for creating the system of indirect taxation generally revenue neutral in relevance production and consumption and widening the assets by covering exempted commodities. The Committee conjointly suggested charging of tax on services like advertising, insurance, share broking and telecommunication etc. to start with on the pattern of advanced economies. the fundamental objective of Service Tax is broadening the assets, augmentation of revenue and bigger participation of voters within the economic development of the state.

delivery services beneath taxation isn't easy because the services area unit intangible and area unit provided by massive teams of organized similarly as unorganized service suppliers as well as retailers United Nations agency area unit scattered across the country. Further, there area unit many services, that area unit of intermediate nature. The low level of education of service suppliers conjointly poses difficulties to both-tax administration and assessees.
Authority

The Authority of levy of Service Tax on specified services is contained in Section sixty six of the Finance Act, 1994 as amended. nowadays this, section stipulates a rate of tax of twelve-tone music of the assessable worth of those services and Education Cess @2% and Secondary/Higher Education Cess @1% in liable on the Service Tax levied and picked up beneath Section sixty six of the Finance Act, 1994.
Administration of Act.
Constitutional Validity
Article 265 of the Constitution lays down that no tax shall be levied or collected except by the authority of law. Schedule VII divides this subject into 3 categories-

a) Union list (only Central Government has power of legislation)
b) State list (only authorities has power of legislation)
c) synchronal list (both Central and authorities will pass legislation).

To alter parliament to formulate by law principles for crucial the modalities of levying the Service Tax by the Central Govt. & assortment of the yield there of by the Central Govt. & the State, the modification vide constitution (95th amendment) Act, 2003 has been created.

Consequently, new article 268 A has been inserted for Service Tax levy by Union Govt., collected and confiscate by the Union Govt., and modification of seventh schedule to the constitution, in list I-Union list when entry 92B, entry 92C has been inserted for taxes on services similarly as in article 270 of the constitution the clause (1) article 268A has been enclosed.
Formation and performance of DGST
Considering the increasing employment thanks to the increasing coverage of service tax, it's been determined to centralise all the work and entrust identical to a separate unit supervised by a awfully senior official. consequently, the workplace of Director General (Service Tax) has been fashioned within the year 1997.

it's headed by the Director General (Service Tax).
theme FOR LEVY, ASSESSMENT
& COLLECTION-OF SERVICE TAX
Service Tax collectible by whom.
The Tax is often collectible by the service supplier. However, in special circumstances, the Govt. might advise the payment not by the service supplier by an individual as notified. issues like body ease, value of assortment might need the shifting of the burden of payment from the service supplier to service receiver or the other person.

maybe,
the service Tax leviable on service provided by AN broker isn't to be paid by the broker himself however by the insurance firm consequently to Section 68(2) of the Finance Act, 1994.

what's Service Tax?

Service tax is AN indirect levy obligatory by the Union Government in terms of residuary entry No.97 in list (I) of the seventh Schedule of the constitution. The tax is applicable to services per the Section sixty four to ninety six of chapter V of the Finance Act, 1994 as amended.

the govt have conjointly notified the procedures to be followed for levy and assortment of service tax vide Service Tax Rules, 1994 as amended. nowadays the speed of Service Tax is twelve-tone music to be levied on the "Value of assessable Service" and Education Cess @2% and better Education Cess@1% is leviable on the Service leived and picked up. typically speaking "Value of assessable Service" means that the gross quantity received by the Service supplier for the assessable service rendered by him.

The one that provides the assessable service on receipt of charges is chargeable for paying the service tax to the govt.
worth of assessable Service
the worth of any assessable service shall be typically the gross quantity charged by the Service suppliers for such services rendered by him (Section 67)

In alternative words, "Gross Amount" here indicate that no deduction shall be allowed in respect of any expenditure incurred by the service supplier that has proximate affiliation in rendering the services by him.

in a very case wherever the availability of Service is for a thought not altogether or part consisting of monthly, be such quantity in cash like the addition of Service tax charged.

in a very case wherever the availability of service is for a thought, that isn't responsible, be the number as is also determined in prescribed manner.


51 comments:

  1. will you upload final classes also please

    ReplyDelete
  2. will you post cpt classes as well and by when

    Thanks for the wonderful job u r doing

    ReplyDelete
  3. @Shalu
    i will upload soon
    @richa
    cpt videos collecting.will upload it after ipcc vids full uploading .wait for that....

    ReplyDelete
  4. Do u have ipcc itsm classes also? if u have please upload them first. i need them urgent.

    ReplyDelete
    Replies
    1. I have all the Lectures..of pcc/ipcc/ca final of any subject, if u interested then mail me to welcome_star2005@yahoo.com.

      Even if u dont want to download & want in DVDs then i will post to your resident address.

      Delete
  5. Do you have ca final lectures completely in english, atleast problem papers. please try

    ReplyDelete
    Replies
    1. This comment has been removed by the author.

      Delete
  6. Replies
    1. This comment has been removed by the author.

      Delete
  7. this site is not working last two days.

    ReplyDelete
  8. please upload IPCC lectures in English :-)

    ReplyDelete
  9. i am eagerly waiting for cpt lectures. please upload soon. thanks a lot

    ReplyDelete
  10. class 17 cannot be joinned properly . plz help

    ReplyDelete
  11. when will u upload final lectures....waiting from a long time...plz do it if convenient

    ReplyDelete
    Replies
    1. I have all the Lectures..of pcc/ipcc/ca final of any subject, if u interested then mail me to welcome_star2005@yahoo.com.

      Even if u dont want to download & want in DVDs then i will post to your resident address.

      Delete
    2. This comment has been removed by the author.

      Delete
  12. Hello sir,as i click on any of these lectures they show the file was deleted plz upload the lectures ,m in gr8 need of the video lectures of ca ipcc all subjects

    ReplyDelete
    Replies
    1. I have all the Lectures..of pcc/ipcc/ca final of any subject, if u interested then mail me to welcome_star2005@yahoo.com.

      Even if u dont want to download & want in DVDs then i will post to your resident address.

      Delete
    2. i want to be all the latest classes of ca final for may 2015 attempt

      Delete
  13. Anybody interested in CA FINAL VIDEOS email at ca.students40@gmail.com
    ca_students40@yahoo.in

    ReplyDelete
  14. i need ipcc A/c 1 Group of parveen sharma

    ReplyDelete
    Replies
    1. I have all the Lectures..of pcc/ipcc/ca final of any subject, if u interested then mail me to welcome_star2005@yahoo.com.

      Even if u dont want to download & want in DVDs then i will post to your resident address.

      Delete
    2. This comment has been removed by the author.

      Delete
  15. Dear admin.

    can u please upload law notes..

    Regards
    Namita

    ReplyDelete
    Replies
    1. I have all the Lectures..of pcc/ipcc/ca final of any subject, if u interested then mail me to welcome_star2005@yahoo.com.

      Even if u dont want to download & want in DVDs then i will post to your resident address.

      Delete
    2. This comment has been removed by the author.

      Delete
  16. if u want any lectures of pcc/ipcc/ca final of any subject then mail me to welcome_star2005@yahoo.com. Even if u dont want to download & want in DVDs then i will post to your resident address.

    Mail me to welcome_star2005@yahoo.com

    ReplyDelete
    Replies
    1. Hey niteshchablani007@gmail.com plz send me ca ipc cost nd fm

      Delete
  17. which videos are of company accounts? and investment accounts?

    ReplyDelete
    Replies
    1. HI Friends,
      Many student's main problem not proper guidance or lectures, I am provided few links of video lectures sites in my blog. It may be its helpful to CA students, And provided software links, and I am as well CA ipcc student,and PG graduate.
      Blog : http://gelli-capreparation.blogspot.in/ ( Post any comment )

      Delete
  18. HI Friends,
    Many student's main problem not proper guidance or lectures, I am provided few links of video lectures sites in my blog. It may be its helpful to CA students, And provided software links, and I am as well CA ipcc student,and PG graduate.
    Blog : http://gelli-capreparation.blogspot.in/ ( Post any comment )

    ReplyDelete
  19. hey guys this link says that original uploader can only download it i really want these notes will somebody help me out to get these.........!!

    ReplyDelete
  20. WHY DO NOT U UPLOAD NEW CLASSES ??
    THE FILES ARE UNABLE TO BE DOWNLOADED??

    ReplyDelete
  21. Replies
    1. This comment has been removed by the author.

      Delete
  22. This comment has been removed by the author.

    ReplyDelete
  23. PLZZ TELL ME THT FROM THE ABOVE VIDEOS WHICH VIDEOS ARE OF BANKING COMPANIES, DEBENTURES & LIQUADATION...

    ReplyDelete
  24. for ca video classes contact:
    vikkyysingh5@gmail.com

    ReplyDelete
  25. CONTACT FOR ALL CA IPCC AND FINAL DVD VIDEO CLASSES AT BEST PRICES.

    hrurmila@gmail.com

    ReplyDelete
  26. hi friends
    u can contact me for the latest classess of the c.a final and ipcc along with the notes at a very normal rates at ur doorstep u can contact me for the same at 7503573004 .

    regards
    rajesh

    ReplyDelete
  27. if any body help me in good faith please upload the cpt all lectures in vivektyagi2678@gmail.com i hope you are clear in ipcc and final please if you are realy help speed post me this address- F-334 SECTOR-36 GREATOR NOIDA UP

    ReplyDelete
  28. are yaar plz upload in any other site or give your id or pass

    ReplyDelete
  29. plz upload lates videos of ca final financial reporting...need them urgently...plz

    ReplyDelete
  30. This comment has been removed by the author.

    ReplyDelete
  31. contact for the full and latest classes of c.a final and ipcc at cheapcds2011@gmail.com

    ReplyDelete
  32. dear admin I have a problem
    whenever I try to download the file, sth like this shows up ,"Oops! Google Chrome could not find www.filesonic.com"
    what should I do about it please suggest me...
    :( desperately waiting for your reply...

    ReplyDelete
  33. Nice and informative Blog regarding Help me with Accounting this is really helpful for people who interested in Education.Get Free Tablet Pc on admission of E_accountant Course at ziitech
    Thanks and Keep Continue to share useful information with us.



    ReplyDelete
  34. For complete IPCC and Final Classes Video lectures Click Below

    www.caipccfinalclassesdvd.blogspot.in/

    Regards-
    Mr.Unknown

    ReplyDelete
  35. ATTENTION AND BEWARE- ALL THOSE PEOPLE WHO UPLOADED CA VIDEOS IN DIFFERENT BLOGS HAVE BEEN ARRESTED AND THEIR BLOGS HAVE BEEN CLOSED BY DEPT OF TELECOM .SO FRIENDS PLEASE BECAREFUL BEFORE HELPING OTHERS .I KNOW SOME PEOPLE WHO WERE ARRESTED FOR COPYRIGHT ISSUE

    ATTENTION AND BEWARE- JITNE BHI LOGO NE BLOGS BANAKAR CLASS UPLOAD KI THI DUSRE STUDENTS KO DOWNLOAD KARNE KE LIYE , UN BLOGS KO GOVT DOT(DEPATMENT OF TELECOM) NE BAND KAR DIYA HAI , AUR JINHONE VIDEOS UPLOAD KI THI UNHE ARREST KAR LIYA GAYA HAI. fOR COPYRIGHT ISSUE .

    ReplyDelete
  36. ATTENTION AND BEWARE- ALL THOSE PEOPLE WHO UPLOADED CA VIDEOS IN DIFFERENT BLOGS HAVE BEEN ARRESTED AND THEIR BLOGS HAVE BEEN CLOSED BY DEPT OF TELECOM .SO FRIENDS PLEASE BECAREFUL BEFORE HELPING OTHERS .I KNOW SOME PEOPLE WHO WERE ARRESTED FOR COPYRIGHT ISSUE

    ATTENTION AND BEWARE- JITNE BHI LOGO NE BLOGS BANAKAR CLASS UPLOAD KI THI DUSRE STUDENTS KO DOWNLOAD KARNE KE LIYE , UN BLOGS KO GOVT DOT(DEPATMENT OF TELECOM) NE BAND KAR DIYA HAI , AUR JINHONE VIDEOS UPLOAD KI THI UNHE ARREST KAR LIYA GAYA HAI. fOR COPYRIGHT ISSUE .

    ReplyDelete
  37. cavideoclass@rediffmail.com -CONTACT FOR ETEN CA VIDEO LECTURES DVDS

    ReplyDelete