Service tax Explained difference sources for government

Service Tax

The government of India collects service tax from certain service providers for providing certain services.The person who pays service tax can be either a service receiver or service provider or any person who is responsible for providing certain services. The finance minister Dr. Manmohan Singh was introduced service tax in 1994-95 Budget.At the time of introducing service tax at the rate of 5% as the sector was contributing 40% of the GDP.The responsibility of collecting service tax CBEC(Central board of excise and customs).

Who collects the service tax?

Central board of excise and customs CBEC collects the service tax.

What is service tax?

Tax on providing services like income tax, sales tax, commercial tax etc to the GOI.

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CBEC Central board of excise and customs

Central board of excise and customs(CBEC) is part of the revenue department under the ministry of finance, a government of India. It deals with the tasks of formulation of policy concerning levy and collection service tax. The service providers who can pay service tax through online e-payment www.cbec.gov.in

Service tax rules

In the year of 1994, service tax was introduced.At present various rules and service tax pay limits are changed.The service tax rules act, and amendments are changed by the Lok Sabha or Ministry of finance.Some service tax rules or schemes are export service rule 2005, Service tax returns repair scheme 2009, service tax( Settlement of cases rule) 2012.

Service tax registration online

The persons can apply for service tax registration online without any hassles. The central board of excise and customs (CBEC) department released new software  ACES( Automation of central excise and service tax) for taxpayers. The software ACES consist entire tax process that are registration refunds and other more information.

Service tax online registration process

  • Firstly, Go to the ACES main website.
  • Click on the option of “Service tax”.
  • Next, click on “New user” option and you get another page to fill the required details.
  • The user can enter their details name, designation and other details.
  • Users can once check their details before click on “submit” button.
  • Finally, the user will get username and password within 24 hours of submitting the details.

Service tax rates

Finance minister Arun Jaitley hike service tax rate to 16-18% of the current 15% in the budget 2017.Goods and services purchased for any value more than Rs. 2 lakhs would attract a 1% tax at source.following are service tax payment limits.

  • Less than 10 lakhs or 10 lakhs:    Nil
  • More than 10 lakhs:  service tax is applicable after Rs. 10 lakh turnover.
  • Less than 10 lakhs: Service tax is applicable from single rupee and No exemption.
  • More than 10 lakhs: Service tax is applicable on all the service and No exemption.

Service tax Online payment

Electronic Accounting System in Excise and Service Tax (EASIEST) is an online based payment launched by CBEC in 2007  to pay Service Tax online.Following steps is online payment of service tax.

  • Firstly, visit cbec-easiest.gov.in.
  • Click on “Easiest e-payment”.
  • Select the bank name to pay the online payment of service tax.
  • Enter the essential details and enter the amount on blanks.
  • Finally, click on submit button and you will get payment alerts to e-mail in 24 hours.


Bank service tax & charge on Money transfer

10% of the service, 2% education cess, 1% SCHS education cess etc.

Just go through the Our income /Commercial /Service Tax section page.

types of taxes 25+ in India.

Categories: income tax