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In simple language

Service tax is a tax charged by government on services.

 

Suppose A provides Consultancy sevice to B of 100000

and Service tax Rate is 15%

In this case,A will send B a bill in which it will charge Service tax as follows 

                          A

Consultancy Services    100000

+ Service Tax                    15000

Total                                115000

 

B will pay him 115000 

and A will deposit this 15000 Service tax to Government  as shown below

 What is Service Tax? - Understanding Basics

Who is the Service Provider and Receiver in this case?

View Answer

Is Service tax Direct Tax or Indirect Tax?

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Who Deposits Service tax? Service Provider or Service Receiver?

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How is Service Tax Different from Vat?

View Answer

 

  1. Service Tax
  2. Basic Concepts of Service Tax
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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