Slides on Wealth n Service Tax

1. WEALTH
TAX
&
SERVICE
TAX
By:
NARESH TOTLANI

25. SERVICE TAX

26. SERVICETAX-INDIRECT TAX (Sec-66B)
Tax on services provided
Or
Agreed to be provided
by service provider to service receiver.
There is no separate ACT for Service
Tax , it is governed by the
Finance Act,1994

27. Applicability of SERVICE
TAX
 Applicable to whole of INDIA except
Jammu & Kashmir.
 Applicable to TWI (Territorial Water of
India) & includes EEZ (Exclusive
Economic Zone) /continental shelf
(only for oil exploration purpose).

28. Different Approaches to SERVICE TAX
SELECTIVE
APPROACH
COMPREHENSIVE
APPROACH
All services are exempt from
service tax except
Selective Services
All services are taxable under
service tax except few
Selective Services
Positive List Negative List
Existing till 30-06-2012 On or after 01-07-2012

29. Road Map of SERVICE TAX
Whether Service provided or agreed to be
provided are under the definition of SERVICE
TAX ?
YES NO
No question of
Service Tax !
Whether such Services are
Negative Listed ?
YES NO
No Service Tax
will be levied !
Whether Services provided
in Taxable Territory ?
YE NO

30. Continued…..
YES NO
Service Tax shall
be levied
No question of
Service Tax !
Whether Services are covered under MEGA
EXEMPTION NOTIFICATION
YES NO
No Liability to
pay Service Tax
Service Tax will be
collected

31. NEGATIVE List (SEC-66D)
i. Services provided by Government or Local Authority.
ii. Services provided by RBI.
iii. Services provided by EMBASSY.
iv. Trading of Goods (Buying & Selling).
v. Any process amounting to Manufacture/Production of
GOODS.
vi. Betting, Gambling & Lottery.
vii.Admisssion to Entertainment Events to amusement
facilities.
viii.Services provided by way of Access to Road or
Bridge on payment of TOLL Charges.
ix. Services related to Agriculture & Agriculture Produce.

32. Continued…..
x. Renting of residential dwelling for use as
residential purpose.
xi.Services provided by Financial Sector.
xii.Services relating to Education.
xiii.Transmission on distribution of Electricity.
xiv.Funeral , Burial (inc. transportation of Deseased).
xv.Selling of space or time slots for Advertisement.
xvi.Services provided by way of transportation of
Goods.
xvii.Services relating to transportation of Passengers.

33. Valuation of Taxable Services
Service Tax Value os taxable services S.T.
Rate
Where Consideration for Provision of
Services :
In MONEY
Only
Wholly OR Partly in
Kind
Not
Ascertainable
Value of Taxable
Services = Gross
Amount Charged
Value of Taxable
Services = Money Value
+ M.V. of Kind
Consideration
Value of Taxable
Services = Gross
Amount Charged
for similar services

34. Payment of SERVICE
TAX
POINT OF TAXATION RULE -3
Whether Invoice is Raised within 30 days from the
date of Completion of Services ?
YES NO
POT will be Earlier of :-
Date of Issue of Invoice.
(OR)
Date of Payment Received.
POT will be Earlier of :-
Date of Completion of Service.
(OR)
Date of Payment Received.

35. Due Date for SERVICE TAX Rule-
6(1)
ASSESSEE
Manner of
Payment Due Date
Individual
/Partnersh
ip
QUARTERL
Y
5th (in case of any other mode)/6th
(in case of electronic payment)
after the month immediately
following quarterly in which
service is deemed to be provided.
Others
(Co./HUF)
MONTHLY
5th (in case of any other mode)/6th
(in case of electronic payment) of
the next month immediately
falling in the month in which
service is deemed to have been
provided.

36. Small Service
ProviderWhether Aggregate Value of Taxable Services
provided during Preceeding F.Y. ≤ 10 Lacs
YES NO
Then, Assessee has the option
to claim the benefit of S.S.P.
No S.S.P. Benefit
Servive Tax will be
charged from 1st
Invoice onward
NO Service Tax will be levied on 1st
consecutive Invoices issued for
taxable services upto Rs. 10,00,000
in Current F.Y.

37. REGISTRATION
PERSON liable to pay
Service Tax
PERSON Not liable to
pay Service Tax
Non-S.S.P. Service
Receiver
S.S.P. Input Service
Distributor
Within 30 Days
from the date of
commencement
of business,
(OR)
Date on which
service become
taxable
Earlier of :-
Within 30 Days
from the receipt
of service,
(OR)
Payment of
Service
Within 30
Days from
the date on
which value
of Taxable
Service
Exceeds
Rs.9,00,000
Within 30
Days from the
date of
Commenceme
nt of Business

38. APPLICATION
ASSESSE
E
Superintendent
of
Central Excise
Form ST-1
Document
s
Within 7Days from the Receipt of Application, the SCE must
confirm whether or not Registration have been GRANTED.
Registration certificate shall be issued in FORM ST-
2
If not replied within 7 Days then, Registration is
DEEMED to be Allowed