Check sibling questions


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 


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?

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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?

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.