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Saturday, 13 April 2013

SERVICE TAX RATE CHART EXEMPTION LIMIT ,ABATEMENT RATE CHART REVERSE CHARGE CHART

And given 10 charts useful related to service tax below.Service tax chart rate since its inception and are applicable for the financial year 2013-14, as in the law of service tax rules in India, reducing the exemption for small service provider scale, due date of filing of service tax in the case of companiessolidarity and history of individual, because of the scheme to pay for other people, Various mitigation available in the service tax chart, service covered by reverse chart.Person charge covered various schemes charge reverse, a due date for the filing of the tax return service, and interest tax rate on service payment is delayed, a penalty forlate submission of service tax. Different configuration schemes available under the service tax rules, such as air travel agent, and life insurance, outdoor caterer, catering services, business services contract, each graph relating to the service tax is contained in one place.


Download Link is given at the End

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1.SERVICE TAX RATE CHART FROM 01.07.1994 TO FINANCIAL YEAR 2013-14

Period
BASIC RATE %
S.T.
HEC
Eff rate
01/07/1994 to 13/05/2003
5
0
0
5%
14/05/2003 to 09/09/2004
8
0
0
8%
10/09/2004 to 17/04/2006
10
2
0
12%
18/04/2006 to 10/05/2007
12
2
0
12.24%
11/05/2007 to 23/02/2009
12
2
1
12.36%
24/02/2009 to 31/03/2012
10
2
1
10.30%
01/04/2012 to DATE
12
2
1
12.36%

 RATE OF SERVICE TAX (applicable w.e.f. 01.04.2012):(also applicable for Fy 2013-14)
1. The Basic rate of service tax is being increased from ten per cent. to twelve per cent.
2. Consequent to change in the rate of service tax, changes are also being made in specific and compounding rates of tax for the following:

a. For Life Insurance under Rule 6(7A)(ii) of Service Tax Rules, 1994
Gross Amount of Premium Charged
New Rate
Old Rate
1st year
3%
1.50%
Subsequent Years
1.50%
1.50%
b. For Money Changing under Rule 6(7B) of Service Tax Rules, 1994
Gross Amount of Currency Exchanged
New Rate
Old Rate
Up to Rs. 1,00,000
0.12% subject to minimum of Rs. 30
0.10 subject to minimum of Rs. 25
For an amount exceeding Rs. 1,00,000 and up to Rs. 10,00,000
Rs. 120 and 0.06%
Rs. 100 and 0.05%
For an amount exceeding Rs. 10,00,000
Rs. 660 and 0.012% subject to maximum of Rs. 6,000
Rs. 550 and 0.01% subject to maximum of Rs. 5,000
c. For Distributor or Selling Agent of Lotteries under Rule 6(7C) of Service Tax Rules, 1994
Guaranteed Prize Payout
New Rate
Old Rate
More than 80%
Rs. 7,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
Rs. 6,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
Less than 80%
Rs. 11,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw
Rs. 9,000/- on every Rs. 10 Lakh (or part of Rs. 10 Lakh) of aggregate face value of lottery tickets printed by the organising State for a draw


d. Transport of passengers embarking in India for domestic and international journey by air :
The dual rate structure of maximum service tax of Rupees 150 and Rupees 750 in case of economy class travel is being replaced by an ad valorem rate of twelve per cent. with abatement of sixty per cent subject to the condition that no credit on inputs and capital goods is taken. Therefore, w.e.f. effective rate of tax on journey by air would be 4.8%, subject to availement of abatement.

1A Various Composition scheme available under Service Tax 


Taxable Service
 Composition Scheme
Conditions
Relevant Notification/Rule
Air Travel Agent
Option to pay service tax at flat rate on ‘basic fare’ @ 0.6% in case of domestic booking and 1.2% in case of international booking – plus education cess (Composition Scheme)
No restriction on availment of Cenvat credit
Rule 6(7) of Service Tax Rules
Foreign Currency – sale and purchase
At slab rates prescribed under rule 6(7B)on total gross amount of currency exchanged (OptionalComposition Scheme)
No restriction on availment of Cenvat Credit
Rule 6(7B) of Service Tax Rules
Foreign Currency – sale and purchase
Value is difference between  buying or selling rate and RBI reference rate (Normal Scheme of valuation)
No restriction on availment of Cenvat Credit
Rule 2B of Service Tax (Determination of Value)  Rules
Life Insurance
3% of net premium (excluding investment or savings part, if such amount is informed to policy holder)  – If not so informed, 3% in first year and 1.5% in subsequent years(Composition Scheme)
No restriction on availment of Cenvat Credit
Rule 6(7A) of Service Tax Rules
Outdoor caterer
Tax on 60% amount excluding State Vat (Composition Scheme) (Till 1-7-2012, it was 50%)
Cenvat credit of input services and capital goods is available. Cenvat credit on food items (covered under Chapters 1 to 22 of CETA) not available. Cenvat credit of other inputs is available.
Rule 2C of Service Tax (Determination of Value) Rules
Restaurant service
Tax on 40% amount excluding State Vat (Composition Scheme) (Till 1-7-2012, it was 30%)
Cenvat credit of input services and capital goods is available. Cenvat credit of excise duty on food items (covered under Chapters 1 to 22 of CETA) not available. Cenvat credit of other inputs is available.
Rule 2C of Service Tax (Determination of Value) Rules
Works Contract Service(read more details here)
Tax on value of service calculated as per rule 2A(i) or Tax on 30%/40%/60% of gross amount charged as specified in rule 2A(ii) (Composition Scheme)
Cenvat credit of input services and capital goods is available. Cenvat credit of excise duty on goods, the property of which is transferred is not available. Cenvat credit of other inputs (like consumables) is available
Rule 2A of Service Tax (Determination of Value) Rules
Tax on 30% of amount charged including fair market value of all goods and services supplied by recipient (termed as Abatement Scheme – actually it is composition scheme)


2.Exemption Limit for Small service provider

Small Service Provider Tax exemption Limits
Effective Date
Amount
Notification
W.e.f 1/4/2005
04 lacs
6/2005 dated 01.03.2005
W.e.f. 1/4/2007
08 lacs
4/2007 Dated 01.03.2008
W.e.f 1/4/2008
10 lacs
8/2008 dated 01.03.2008
W.e.f 1/7/2012
10 lacs
33/2012 Dated 20.06.2012

 3.Service Tax return due Date for all person :

4.Penalty on late filing of service Tax return  

After enactment of Finance Bill 2011, the following position has emerge out:
Period of Delay
Penalty/late fee before finance bill 2011
Penalty/late fee After finance bill 2011
for delay up to 15 days
INR 500
INR 500
for delay beyond 15 days but up to 30 days
INR 1,000
INR 1,000
for delay beyond 30 days
INR 1,000 + INR 100 per day (from 31st daysubject to a maximum amount of Rs 2000.
INR 1,000 + INR 100 per day (from 31st daysubject to a maximum amount of Rs 20000.



‘Provided also that where the gross amount of service tax payable is nil, the Central Excise officer may, on being satisfied that there is sufficient reason for not filing the return, reduce or waive the penalty’.
Read more:about penalty on late filing of service tax return 


 5.Service tax payment Due date 


Category
Frequency
Due Dates
In case of Individuals, proprietary Firms & Partnership Firms
Quarterly as mentioned below -
(6th for internet payment)
( i ) For Q.E. 30th June
- by 5th July 
(ii ) For Q.E. 30th Sept.
- by 5th Oct
( iii ) For Q.E. 31St Dec.
- by 5th Jan.
( iv ) For Q.E. 31st March
- by 31st March
Others (e.g. Companies,Societies, Trusts etc.)
Monthly
By 5th of the month immediately following the month .However, in case of March, the payment should be made by 31st March.



6.Interest on late payment of service Tax 

The new rate of interest of 18% will be applicable from 1st April, 2011.However interest rate is reduced by 3 % for turnover up to 60 Lacs

“Provided that in the case of a service provider, whose value of taxable services provided in a financial year does not exceed sixty lakh rupees during any of the financial years covered by the notice issued under sub-section (3) of section 73A or during the last preceding financial year, as the case may be, such rate of interest shall be reduced by three percent per annum.”

So the reduced interest rate of 15% (18%-3%) will be applicable in case where the value of taxable services provided in a financial year is not more that Rs. 60 lakh. But this provision will have a limited application as only to the small service providers but no relief to the large tax payers has been provided.


7.Abatement Rates on various services
Sr No.
Description of taxable service
% Abatement
% taxable
Conditions
1
2
3
4
5
1
Services in relation to financial leasing including hire purchase
90
10
Nil.
2
Transport of goods by rail
70
30
Nil.
3
Transport of passengers, with  or without accompanied belongings by rail
70
30
Nil.
4
Bundled service by way of supply of food or any other article of human consumption or any drink, in a premises (   including hotel, convention center, club, pandal,shamiana or any other place, specially arranged for organizing a function) together with renting of such premises
30
70
(i) CENVAT credit on any goods classifiable under Chapters 1 to 22 of the Central Excise Tariff Act, 1985 (5 of 1986) used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
5
Transport of passengers by air, with or without accompanied belongings
60
40
CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
6
Renting of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes.
40
60
Same as above.
7
Services of goods transport agency in relation to transportation of goods.
75
25
CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
8
Services provided in relation to chit
30
70
Same as above.
9
Renting of any motor vehicle designed to carry passengers
60
40
Same as above.
10
Transport of goods in a vessel
50
50
Same as above.
11
Services  by a tour operator in relation to,- (i)  a package tour
75
25
(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii) The bill issued for this purpose indicates that it is inclusive of charges for such a tour.
(ii)  a tour, if the tour operator is providing services solely of arranging or booking accommodation for any person in relation to a tour
90
10
(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii) The invoice, bill or challan issued indicates that it is towards the charges for such accommodation.
(iii) This exemption shall not apply in such cases where the invoice, bill or challanissued by the tour operator, in relation to a tour, only includes the service charges for arranging or booking accommodation for any person and does not include the cost of such accommodation.
(iii) any services other than specified at (i) and (ii) above.
60
40
(i) CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii)The bill issued indicates that the amount charged in the bill is the gross amount charged for such a tour.
12
Construction of a complex, building, civil structure or a part thereof, intended for a sale to a buyer, wholly or partly except where entire consideration is received after issuance of completion certificate by the competent authority
75
25
(i) CENVAT credit on inputs used for providing the taxable service has not been taken under the provisions of the CENVAT Credit Rules, 2004.
(ii)The value of land is included in the   amount charged from the service receiver.
a. Residential properties having a carpet area above 2000 sq ft and where amount charged is equal to or more than Rs. 1 crore, b. Commercial properties. 
70
30
same two conditions above
(Notification No. 02/2013-ST dated 1st March, 2013 applicable wef 01.03.13)                



8.Service Covered under reverse charge


Sl.No.
Description of a service
Percentage of  service tax payable by the person providing service
Percentage of service tax payable by the person receiving the service
1
services  provided or agreed to be provided  by an insurance agent to any person carrying on insurance business
Nil
100%
2
services  provided or agreed to be provided  by a goods transport agency in respect of transportation  of goods by road
Nil
100%
3
services  provided or agreed to be provided  by way of sponsorship
Nil
100%
4
services  provided or agreed to be provided  by an arbitral tribunal
Nil
100%
5
services  provided or agreed to be provided  by individual advocate
Nil
100%
6
services  provided or agreed to be provided  by way of support service by Government or local authority
Nil
100%
7
(a)   in respect of  services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on abated value.
(b)   in respect of  services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on non abated value.
Nil




60%
100 %




40%
8.
services  provided or agreed to be provided  by way of supply of manpower or Security services(inserted in notification 45-46 dated 07/08/2012)  for any purpose
25%
Read FAQ about Director and Security Services Under reverse charge Mechanism 
75 %
9.
services  provided or agreed to be provided  by way of works contract
50%
50%
10
any taxable services  provided or agreed to be provided  by any person who is located in a non-taxable territory and received by any person located in the taxable territory(IMPORT OF SERVICES)
Nil
100%
11
provided or agreed to be provided by a directorof a company to the said company
(Inserted through notification 46-47/2012 dated 07/08/2012)

Nil
Read FAQ about Director and Security Services Under reverse charge Mechanism

100%



From old list notified vide notification 36/2004 31/12/2004  three service has been deleted 
  1. Telecommunication
  2. General Insurance auxiliary
  3. Mutual Fund distributor services.
Support services By Govt or Local authority :Section 65B(49) of Finance Act, 1994 provides the definition of ‘support services’. Support services in respect of which service tax is payable by business entity receiving such services from government or local authority are as under: 
(i) Infrastructural Support Services; 
(ii) Operational support Services; 
(iii) Administrative Support Services; 
(iv) Logistic Services; 
(v) Marketing Services; 
(vi)  Advertisement Services; 
(vii) Promotion Services; 
(viii) Construction or Works Contract Services; 
(ix) Security; 
(x) Testing and Analysis 
(xi) Any other support of any kind comprising functions that entities carry out in ordinary course of  operations themselves but may obtain as services by outsourcing from others for any reason whatsoever. 

Partial Reverse charge :But few new services has been added in the List and for the first time in service tax act /regime partial reverse charge under service tax has been introduced. Now both service receiver and service provider have to pay tax as per prescribed % in case of four services.

The reverse charge is applicable if service receiver /service provider satisfy few condition .In other case service provider has to pay tax on full amount of service.

9.Persons Covered under reverse charge 
Sl.No.
Description of a service
SERVICE PROVIDER
SERVICE RECEIVER
1
services  provided by an insurance agent to any person carrying on insurance business
ANY
ANY
2
services  provided or agreed to be   provided  by a goods transport agency in respect   of transportation  of goods by road
where the consignor or the consignee  is,—
(a)  any factory registered under or governed by the Factories Act, 1948 (63 of 1948);
(b)  any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;
(c)  any co-operative society established by or under any law;
(d)  any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;
(e)  any body corporate established, by or under any law; or
(f)  any partnership firm whether registered or not under any law including association of persons;
3
services  provided or agreed to be   provided  by way of sponsorship
any
body corporate/partnerhip firm
4
services  provided or agreed to be   provided  by an arbitral tribunal
Arbitral tribunal
Business entity with a turnover more than rupees ten lakh in the preceding financial year;
5
Legal Services provided
by advocate (whether
individual or firm) to any
business entity  
individual or firm
Business entity with a turnover more than rupees ten lakh in the preceding financial year;
6
services  provided or agreed to be   provided  by way of support service by Government or local authority
Government /Local authority
Business entity
7
(a)   services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on abated value.
Individual (prop ) /Partnership firm (registered or unregistered)             /HUF
any company formed or registered under the Companies Act, 1956 (1 of  1956) or a business entity registered as body corporate located in the taxable territory;
(b) services  provided or agreed to be provided  by way of renting or hiring any motor vehicle designed to carry passenger on non abated value.
8
services  provided or agreed to be   provided  by way of supply of manpower or security services  for any purpose
9
services  provided or agreed to be   provided  by way of works contract
10
any taxable services  provided or agreed to be provided  by any person who is located in a non-taxable territory and received by any person located in the taxable territory
any
any
11
provided or agreed to be provided by a director of a company to the said company

Read more: http://www.simpletaxindia.net/2012/08/security-services-director-covered-in.html#ixzz230dkwCQg
(inserted by notification 46/2012 date 07/08/2012)
Director (individual)
Company


Now, w. e. f. 07.08.2012, following additional services shall be covered by reverse charge mechanism(Notification 45/2012 and 46/2012 dated 07/08/2012)


10. List of Negative services 

66D. Negative list of services.(Applicable wef 1 July 2012 vide Not. No. 19/2012-ST dated 5 June 2012) The negative list shall comprise of the following services, namely:––

(a) services by Government or a local authority excluding the following services to the extent they are not covered elsewhere—

  • (i) services by the Department of Posts by way of speed post, express parcel post, life insurance and agency services provided to a person other than Government;
  • (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;(iii) transport of goods or passengers; or
  • (iv) support services, other than services covered under clauses (i) to (iii) above, provided to business entities;

(b) services by the Reserve Bank of India;

(c) services by a foreign diplomatic mission located in India;

(d) services relating to agriculture or agricultural produce by way of —

  • (i) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or seed (Omitted from the date of Presidential Assent TO FINANCE BILL 2013) testing;
  • (ii) supply of farm labour;
  • (iii) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
  • (iv) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;(v) loading, unloading, packing, storage or warehousing of agricultural produce;
  • (vi) agricultural extension services;
  • (vii) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce;(e) trading of goods;

(f) any process amounting to manufacture or production of goods;

(g) selling of space or time slots for advertisements other than advertisements broadcast by radio or television;

(h) service by way of access to a road or a bridge on payment of toll charges;

(i) betting, gambling or lottery;

(j) admission to entertainment events or access to amusement facilities;

(k) transmission or distribution of electricity by an electricity transmission or distribution utility;

(l) services by way of—

  • (i) pre-school education and education up to higher secondary school or equivalent;
  • (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
  • (iii) education as a part of an approved vocational education course;

(m) services by way of renting of residential dwelling for use as residence;

(n) services by way of—

  • (i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount;
  • (ii) inter se sale or purchase of foreign currency amongst banks or authorised dealers of foreign exchange or amongst banks and such dealers;

(o) service of transportation of passengers, with or without accompanied belongings, by—

  • (i) a stage carriage;
  • (ii) railways in a class other than—
    • (A) first class; or
    • (B) an air conditioned coach; 
  • (iii) metro, monorail or tramway;
  • (iv) inland waterways;
  • (v) public transport, other than predominantly for tourism purpose, in a vessel, between places located in India; and
  • (vi) metered cabs, radio taxis or auto rickshaws;
(p) services by way of transportation of goods—

  • (i) by road except the services of—
    • (A) a goods transportation agency; or
    • (B) a courier agency;
  • (ii) by an aircraft or a vessel from a place outside India up to the customs station of clearance; or
  • (iii) by inland waterways;

(q) funeral, burial, crematorium or mortuary services including transportation of the deceased.


Tag:Service tax Rate chart 2013-14, current service tax rate , service tax exemption , service tax abatement, service tax reverse charge list ,Service tax return due date for return, Due date to deposit service tax , service tax related chart, Interest on late deposit of service tax , Penalty on late filing of service tax return 2013-14

6 comments:

  1. Dear admin ,

    You have copied this post from simple Tax India without permission ,you are requested to delete it from your site.

    regards

    ReplyDelete
  2. Dear Sir,
    What is the rate of service tax charged on General Insurance Premium (such as) Mediclaim.
    Also pl inform the rate of Service tax on Life Insurance Premium for first year and then subsequent year.

    ReplyDelete
  3. Sir,

    We will be conducting Skill Development Program by training the students in Mind Power and Spoken English. Kindly let us know whether our services are liable to Service Tax. What is the minimum limit for registering our institute which is a partnership firm.

    ReplyDelete
    Replies
    1. Dear P.K.Keshap
      If you want to know more about service tax please go with vatconsultantsnoida.com

      Delete
  4. Hi can i get subscription of ur posts

    ReplyDelete
  5. please provide me about all form of vat

    ReplyDelete