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?

View Answer

Is Service tax Direct Tax or Indirect Tax?

View Answer

Who Deposits Service tax? Service Provider or Service Receiver?

View Answer

How is Service Tax Different from Vat?

View Answer


  1. Tax Practical
  2. Practical Service Tax

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 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.