Service Tax is a tax payable to the Government by Service providers on certain service transactions but is actually borne by the customers. A person liable to pay Service Tax and came into existence under a part of Finance Act, 1994. It is categorized under Indirect Tax and Central Board of Excise and Customs (CBEC). Therefore, they have the responsibility of collecting the levy in different states in India. While it is not imposed in the state of Jammu & Kashmir.
While Travelling Agencies, Consultancy Services, Hotels, Restaurant, Food Services and Cab Services provide taxable services. Hence the Government of India collects the Service Tax for these services.
What is the current service tax rate?
The Services Tax was introduced in the year 1994. Presently, the services tax rate is 14%. This rate is applicable since June 2015. So the tax is supposed to be paid quarterly or monthly.
Some of the following services that possess Services Tax in India:
Banking and Financial Services
Business Support Services
Cargo and Shipping Services
Credit or Debit card Services
Dry Cleaning Services
Event Managment Services
Health Club and also Fitness Centre
Human Resource Services
Internet & Telephone Services
Maintenance & Repair Services
Real Estate Consultant
Storage & Warehousing Services
And also Traveling Agencies