What is abatement under service tax?
In commercial law, it means an allowance of discount made for prompt payment. In reverse law, abatement is a deduction from or refunding of duties on taxes on goods etc. In case of debts, abatement would mean reduction of payment where a fund is insufficient to meet all the claims. One who abates is called abator.
What is the exemption limit for service tax?
Rs. 10 Lakhs
The aggregate value of taxable services rendered by a service provider shall not exceed Rs. 10 Lakhs during the previous financial year. In other words, service tax exemption can only be claimed if in both the previous as well as the current financial year, the aggregate value of taxable services does not exceed Rs.
What is the rate of service tax?
15%
Calculation of Service Tax From the 1st of June 2016, service tax is levied at 15% of the value of taxable services under Section 66 of the Service Tax Act. The 15% includes 0.5% Krishi Kalyan Cess and 0.5% Swach Bharat Cess.
How is service tax calculated on freight?
The actual amount of service tax payable is 25% of the amount of freight i.e. 75% of amount of freight is provided as abatement, subject of the condition that no Cenvat credit of the duty paid has been availed of under Cenvat Credit Scheme.
Is service tax applicable on loading and unloading charges?
16 August 2012 Paying the loading & unloading charges will not come under service tax for the service provider since these are all expenses for him.
What is the service tax rate for FY 2016 17?
14.5%
Krishi Kalyan Cess, which was announced during the 2016–17 Budget, has become applicable from 1 June. A tax of 0.5% would be levied over and above the Service Tax and Swachh Bharat Cess. Till 31 May 2016, the Service Tax rate was 14.5%. With Krishi Kalyan cess, the service tax would increase to 15%.
What is the threshold limit for service tax registration?
All service providers in India are required to obtain service tax registration once the annual aggregate taxable services revenue exceeds Rs. 9 lakhs. Service tax payment or liability accrues once the aggregate value exceeds Rs. 10 lakhs.
What is the rate of service tax in 2011 12?
With effect from 01.04. 2012, Rate of service tax has been increased from 10.3% to 12.36%. Therefore, professionals and assesses must know where the old rate of Service Tax can be applied.
How do I calculate service tax?
2009 the rate of service tax is 10% on gross value of the taxable service plus 2% Education Cess on the service tax amount and 1% Secondary Higher Education Cess on the service tax amount. Example: Suppose the value of taxable service is Rs. 100. Service tax @10% will be Rs.
What are the changes in the rate of service tax?
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
What is ad valorem rate of service tax in India?
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.
What is the new abatement in CCR 2004?
Now, the abatement shall be available subject to the condition that Cenvat credit on inputs, capital goods and input services, used for providing the taxable services has not been taken under CCR, 2004. 2. Goods Transport Agency- Abatement on “Transportation of goods by Goods Transport Agency” was 75% which has now been reduced to 70%.
What is the abatement on transportation of goods in a vessel?
4. Transport of goods in a vessel – Abatement on “Transportation of goods in a vessel” was 60% which has now been increased to 70%. 5. Transport of passengers by Air – Hitherto, an abatement of 60% was provided on taxable services of transport of passengers by air (with or without accompanied belongings).