Service Tax

What is Service Tax?

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:

  • Airport Services
  • Automobile Services
  • Banking and Financial Services
  • Beauty Parlour
  • Business Support Services
  • Cargo and Shipping Services
  • Chartered Accountant
  • Cleaning Services
  • Consultancy Services
  • Courier Services
  • Credit or Debit card Services
  • Design Services
  • Dry Cleaning Services
  • Electronic Services
  • Event Managment Services
  • Export-Import Service
  • Franchise Services
  • Health Club and also Fitness Centre
  • Human Resource Services
  • Immigration Services
  • Insurance Services
  • Internet & Telephone Services
  • Maintenance & Repair Services
  • Passport Services
  • Postal Services
  • Real Estate Consultant
  • Security Agency
  • Storage & Warehousing Services
  • Telecommunication Services
  • Tourist Services
  • And also Traveling Agencies