Service Tax
Service Tax Procedures

Normally it is imposed on service provider, however sometimes, it is imposed on service receiver also.


Types of Service Tax

 Service tax is of 3 types

1. Normal Charge

2. Reverse charge

3.Partial Reverse charge



Normal Charge Reverse Charge Partial Reverse Charge
Service tax is paid by service provider Service tax is paid by service receiver Service tax is paid by service provider and some by service receiver
Service Provider charges service tax from service reciever, and collects and deposits to government Service receiver deposits service tax directly to government Some portion of service tax is paid by Service provider to government and some directly by service receiver
It is most normal case It is a rare case It is a very rare case


Exam Questions

Question 4
Mr. A sponsored a dance competition organized by ‘Taal Academy’, a dance school run by an
individual. The dance competition was named as ‘Mr. A’s Dance Show’ by ‘Taal Academy’.
Who is liable to pay service tax in this case? Will your answer be different if ‘Taal Academy’ is
run by a partnership firm?

View Answer

Question 28
Ashok, a taxable service provider, outsourced a part of work by engaging Suresh, a
subcontractor. Service tax is charged and paid by Ashok for the total work. Whether Suresh,
the sub contractor, is liable to charge and pay any service tax?

View Answer

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.