Table of Contents
Who has to pay service tax in India?
the service provider
05. Person liable to pay service tax The tax is normally payable by the service provider. However law empowers the Government to notify a person other than the service provider to pay the service tax.. In some of the cases liability of payment of service tax has been shifted to the service provider.
Is it mandatory to pay service tax in India?
In 2017, the government had said, “As per the approved guidelines on service charge, service charge is totally voluntary and not mandatory now. Hotels and restaurants should not decide how much service charge is to be paid by the customer and it should be left to the discretion of the customer.”
What is the rule & computation of service tax?
2009 the rate of service tax is 10% on gross value of the taxable service plus 2% Education Cess on the service tax amount and 1% Secondary Higher Education Cess on the service tax amount. Example: Suppose the value of taxable service is Rs. 100. Service tax @10% will be Rs.
Is it compulsory to give service tax?
Service charge is different from service tax, which is a statutory levy under the Goods and Services Tax. It is not mandatory under Indian consumer laws, according to the consumer affairs ministry.
Is it illegal not to pay service charge?
Re: “Optional Service Charge” – legal? The service charge, usually 12.5%, is discretionary and quite ‘legal’. If you deem service as unacceptable or do not wish to pay you may ask to have it removed from the bill.
Who is eligible for service tax registration?
Every person who has provided a taxable service of value exceeding Rs. 9 lakhs, in the preceding financial year, is required to register with the Central Excise or Service Tax office having jurisdiction over the premises or office of such service provider.
Is service tax registration mandatory?
Service Tax registration is mandatory for every person or business in India that has provided a taxable service of value exceeding Rs. 9 lakhs, in the previous financial year.
Can we refuse to pay service charge?
Customer can’t refuse to pay service charge after consuming food: Restaurant association. NEW DELHI: Having consumed the meal served at a restaurant, a customer cannot ask for service charges to be dropped, the National Restaurant Association of India has said.
Can we refuse to pay service tax?
If you are being charged for service charge in a hotel or restaurant then you can refuse it.
What is the law on service charge?
The law states that any service charge contributions are held on trust by the landlord, for the leaseholders. This means, in practice, that the money can be held in one or more account such as a bank or building society to be used for the purposes set out in the lease.
Can owners take service charge?
The government has confirmed restaurant owners will be banned from taking customer tips and service charge payments from around two million waiting staff and hospitality workers, after it published a long-awaited response to a consultation on tipping, gratuities, cover and service charges, which closed in June 2016.
What is the turnover limit for service tax registration?
All service providers in India are required to obtain service tax registration once the annual aggregate taxable services revenue exceeds Rs. 9 lakhs. Service tax payment or liability accrues once the aggregate value exceeds Rs. 10 lakhs.
Are service charges legal in India?
Service charge: India bans service charge at hotels and restaurants. India’s consumer protection authority has banned hotels and restaurants from levying a service charge on bills. The order came after authorities said there had been an increase in complaints by customers being forced to pay the charge.
What happens if you don’t pay service charge?
Information about how and when to pay your service charge and ground rent should be included in your lease. Falling behind with service charge or ground rent can lead to further action including eviction and repossession.
Can a service charge be compulsory?
Certain restaurant chains will add a compulsory service charge to your bill, while others will leave it up to you. You only have to pay the service charge if it is made clear verbally or in writing before the meal.
Is it compulsory to pay a service charge?
No, there’s no obligation to tip or to pay an optional service charge. Oh, and that different countries have different customs, it’s not nice to visit and call our customs crazy. I thought that was all quite helpful, actually.
Can u refuse to pay service charge?
No, there’s no obligation to tip or to pay an optional service charge. Oh, and that different countries have different customs, it’s not nice to visit and call our customs crazy.
What is the rate of service tax?
Service tax came into existence in 1994. The rate of service tax charged right now is 15%. Service tax comes with its own rules and regulations. Given below is a detailed explanation about service tax rules.
What are the rules for assessment and collection of service tax?
In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules for the purpose of the assessment and collection of service tax, namely :- 1. Short title and commencement
How to pay service tax in India?
1 Service tax should be paid to the Central Government by the 5th of the month following the month in which payments were received. 2 The assessee should deposit the tax with a bank designated by the Central board of Excise. 3 The assessee can adjust the excess service tax paid by them if they have paid for a taxable service not provided by them.
When did service tax come into effect in India?
The service tax in India was imposed under Section 65 of the Finance Act, 1994. With the roll-out of the budget of 1994, it came into effect from July 1, 1994, the services that were included under the service tax were increased gradually from 1994.