Every individual and business providing services defined U/s 65B(44) and declared services U/s 66E of the Finance Act, 1994 with an annual income of Rs. 9 lakhs or more are subjected to pay 14% service tax along with Swacch Bharat cess at 0.5% and Krishi Kalyan cess at 0.5% if applicable to the Central Government of India. Services under negative list are exempted from paying service tax under Mega notification 25/2012 amended by Notification No. 40/2016.
The entity liable to pay service tax has to apply for registration through ACES portal (www.aces.gov.in) within 30 days of commencing the taxable service. Once the registration is completed, online payment can be made on the website www.cbec-easiest.gov.in.
Generally, the service tax is filed half-yearly by 25th October and 25th April every year for the year ending in September and March, respectively. But it primarily depends on the type of entity as follows:
For Individual (Quarterly basis):
Electronic mode – 6th July, 6th October, 6th January and 31st March
Other modes – 5th July, 5th October, 5th January and 31st March
For Proprietorship (Quarterly basis):
Electronic mode – 6th July, 6th October, 6th January and 31st March
Other modes – 5th July, 5th October, 5th January and 31st March
For Partnership (Quarterly basis):
Electronic mode – 6th July, 6th October, 6th January and 31st March
Other modes – 5th July, 5th October, 5th January and 31st March
For Private Ltd Co. (Quarterly basis):
Electronic mode – 6th of following month from April to June; July to September; October to December; January to March
Other modes – 5th of following month from April to June; July to September; October to December; January to March
For Limited Liability Partnership (Quarterly basis):
Electronic mode – 6th of following month from April to June; July to September; October to December; January to March
Other modes – 5th of following month from April to June; July to September; October to December; January to March
For One Person Company (Monthly basis):
Electronic mode – 6th of every month and 31st March
Other modes – 5th of every month and 31st March
The financial year ending for the above service tax filing for monthly and quarterly basis is 31st March.
The midnight of 01 July 2017 GST came into effect after the Goods and Service Tax (GST) Act passed in the Parliament. After 01 July 2017, only GST is applicable in India.
What is GST?
It is proposed to combine all of the aforementioned taxes into a single tax known as the Goods and Services Tax (GST), which will be assessed on the supply of goods or services, or both, at every point along the supply chain, beginning with manufacture or import and continuing through the final retail level. Therefore, the GST will essentially converge with any tax that is now imposed by the Central or State Government on the sale of goods or services.