1. C an we take Cenvat Credit on Rent - a-cab Service?
View answer
Only following service Providers can take input of Rent a cab
- transportation of passengers;(Taxi Service) or
- renting of such motor vehicle;(Cars on Rent) or
- imparting motor driving skills;(Car Driving schools)
(All these directly use Cab for provididing these services
2. What are the changes in Reverse charge mechanism (effective from 01-04-2015)
View answer
From 1.4.2015 Reverse charge introduced in case of Aggregator Service Lottery Agent Service Mutual Fund Agent Service Also in case of Manpower Service of Non COmpany Service Provider and receiver earlier paid 25% and 75% now Service Provider did not pay anything and service receiver paid 100% https://www.teachoo.com/475/1153/Different-Services-under-Reverse-Charge-Amendment/category/-Reverse-Charge-Amendments/
3.What are the changes in Reverse charge mechanism (effective from 01-10-2014)
View answer
Reverse charge introduced in case of Aggregator Service Lottery Agent Service Mutual Fund Agent Service Also in case of Manpower Service of Non COmpany Service Provider and receiver earlier paid 25% and 75% now Service Provider did not pay anything and service receiver paid 100%
Before 1/10/2014 In case of Motor Cab (rENT a cab service) in case service provider doesnot take abatement, Provider and receiver paid 60% and 40% From 1/10/2014,Provider and receiver paid 50% and 50% Learn more https://www.teachoo.com/476/1153/Different-Services-under-Partial-Reverse-Charge/category/-Reverse-Charge-Amendments/
4. What is the Change in Abatement for GTA services w.e.f. 01.04.15?
View answer
Earlier there was 75% Abatement on Goods Transport Service (Freight Service) Now,there is 70% Abatement Current Rate =15%*30%=4.5% Learn More https://www.teachoo.com/436/148/Difference-between-Exemptions-and-Abatements/category/Basics/
5. What is the rate of Swachh Bharat Cess and when it will come in effect? On which value it will be charged?
View answer
Swachh Bharat Cess came into effect from 15 Nov 2016 It is charged on Amount of taxable service https://www.teachoo.com/3875/320/What-is-the-Rate-of-Service-Tax--for-2015-16-and-2016-17/category/Basics/
6. What is the new Service Tax Rate and when it will come in effect?
View answer
New Service tax Rate is 15% (14% Service tax+0.5% Swachh Bharat Cess+0.5% Krishi Kalyan Cess) from 1 june 2016 Learn more https://www.teachoo.com/3875/320/What-is-the-Rate-of-Service-Tax--for-2015-16-and-2016-17/category/Basics/
7. What is the date of payment service tax where the amount of service tax is paid by cheque and its presented to the designer bank on May 6, 2013 and realized by the bank on May 7,2013 ? Whether any interest and penalty is attracted in this case?
View answer
Not relevant now as Service tax is now paid electronically through epayment
8. Whether service tax credit availed on input service during the period June 1, 2016 To June 4 , 2016 can be utilized for the payment of service tax on the output services provide for the month ended May, 2016 which is due for payment on June 6, 2016
View answer
No
It can be used for payment of Service tax of June 2016 whose due date is July 6,2016
Service tax of May 2016 is due for payment on June 6 2016
9 . Is service tax payable on the advances received by service provider ?
View answer
Yes
Service tax is normally payable on Bill Issued or Advance Received which ever is earlier
However some persons pay it only on cash basis
Refer
10. What is the time limit under rule 4A for raising / issuing an invoice ?
View answer
11. What are the due dates of monthly / quarterly payment of service tax and filling of returns under the service tax law?
View answer
12. Write short note on reverse charges mechanism in service tax.
View answer
13. If service provider not charging service tax on bill & not depositing to department then who is liable for service tax...service provider or service receiver..???
Support with actual case study?
View answer
There can be 2 cases
- Service falls under Normal Charge
- Service falls underReverse Charge
1.Service falls under Normal Charge
In this case,Service Provider is responsible to pay Service tax
Suppose Service provider gives bill of 100000 and fails to charge Service tax,
it will be assumed that bill of 100000 includes Service tax of 15%
So
Amount=100000*100/115=86957
Add Service tax @ 15%=13043
Total=100000
2. If Service falls under Reverse charge
Suppose Service provider gives bill of 100000 and fails to charge Service tax,
In this case, Service receiver has to pay him 100000+pay 15000 Service tax to Govt
In case,Service provider gives bill of 100000 + 15000 Service tax,in this case also Service receiver has to pay him 100000+pay 15000 Service tax to Govt
-ea-