Who is liable for service tax?

Generally, the liability to pay service tax has been placed on the ‘service provider‘. However, in respect of the taxable services notified under Sec. 68(2) of the Finance Act,1994, the service tax shall be paid by such person and in such manner as may be prescribed at the rate specified in Sec.

In this regard, What is the rule of service tax?

Under Rule 4A of the Service Tax Rules, 1994, it is compulsory for a service tax assessee to issue a bill or invoice within 14 days from the date on which the taxable service was completed or the date on which the payment was received for the service, whichever comes first. … The amount of service tax payable.

Regarding this, Is it compulsory to pay service tax?

According to Union government approved guidelines in 2017, service charge on hotel and restaurant bills are voluntary and not mandatory. … When he received his bill, he noticed he had been charged a 10% service charge, in addition to the goods and service tax (GST).

Beside above, What is the penalty for not paying service tax?

If an assessee has not filed his or her service tax return, then a late payment fee of Rs 500 will be charged for the initial 15 days of delay. If an assessee has not filed his or her service tax return, then a late payment fee of Rs 1,000 will be charged for delays ranging from 15 to 30 days.

How is your service tax reverse charge? When person receiving service is liable to pay service tax under reverse charge, he is not entitled to exemption which is available to a small service provider. Thus, the service receiver is liable to pay service tax even if value of service of service provider is less than Rs. 10 Lakhs.

18 Related Questions Answers Found

Can I pay service tax now?

Under EASIEST, the assessee is required to access the NSDL-EASIEST website, https://cbec-easiest

.gov.

in/EST/ and select the option, E-Payment (Excise & Service Tax).

…

Electronic Payment of Central Excise Duty and Service Tax through EASIEST.

What happens if service tax is not paid?

If an assessee has not filed his or her service tax return for more than 30 days following the expiry of the prescribed deadline, then a late payment fee of Rs 1,000, along with an extra charge of Rs 100 for every additional day of delay in excess of the initial 30 days, will be charged.

Is it illegal to keep service charge?

Tips paid voluntarily by customers that are added to a credit card payment or even to a cheque become the property of your employer when they are paid. … In fact, your employer is entitled to keep this money in its entirety but may choose to distribute it amongst staff.

Can you refuse to pay service charge?

Compulsory service charge

In essence you have the right to refuse to pay the service charge in either circumstance if the service falls below a reasonable standard. If a service charge is compulsory, the restaurant must make this clear before you eat.

Can service tax be paid now?

As you are aware, currently taxpayers are making payments of Central Excise duties and Service Tax arrears through EASIEST Portal, DG Systems has now integrated payments of CE & ST with ICE GATE portal and the new payment gate way portal “CBIC (ICEGATE) E-payment” will be operational w.e.f., 1st July, 2019 onwards.

Can penalty under service tax be waived?

Service Tax Penal Provisions Frequently Asked Questions

However, Section 80 of the Finance Act, 1994, states that penalties can be waived off if the assessee in question can furnish reasonable evidence or proof that can provide justification of failure to make payment of service tax.

Can you go to jail for not filing a tax return?

Penalty for Tax Evasion in California

Tax evasion in California is punishable by up to one year in county jail or state prison, as well as fines of up to $20,000. The state can also require you to pay your back taxes, and it will place a lien on your property as a security until you pay.

Who is responsible for service tax under RCM?

6. Support Service by Government or Local Authority‐ In relation to service provided or to be provided by Government or local authority to any business entity located in the taxable territory, the recipient of such service. The recipient in such case will be liable to pay 100% service tax.

What is point of taxation in service tax?

Point of taxation means the point in time when goods have been deemed to be supplied or services have been deemed to be provided. The point of taxation enables us to determine the rate of tax, value, and due dates for payment of taxes.

What if RCM is not paid?

The person cannot take the plea that there is no revenue loss if he had not paid the RCM liability because if he pays RCM liability then the same time, he will avail input tax credit. … It is not necessary if the person pays reverse charge liability, he is eligible for availing input tax credit.

What is the difference between service charge and service tax?

According to the Ministry of Consumer Affairs, Food and Public Distribution, the voluntary amount levied by the restaurant that the customers pay at their discretion is known as the Service Charge. Service Tax, on the other hand, is payable to the Government.

Can penalty under Service Tax be waived?

Service Tax Penal Provisions Frequently Asked Questions

However, Section 80 of the Finance Act, 1994, states that penalties can be waived off if the assessee in question can furnish reasonable evidence or proof that can provide justification of failure to make payment of service tax.

What is the due date for payment of Service Tax?

Monthly Payments:

If the service taxes are paid online through internet banking, etc., the payments will be due on the 6th of every month and the 31st of March. If the service taxes are paid by any other means, the payments will be due on the 5th of every month and the 31st of March.

How can I download Service Tax return now?

The same can be downloaded from http://acesdownload.nic.in/. It can also be accessed from ‘DOWNLOADS’ section of ACES website, www.aces.gov.in. The online version of the same will be made available shortly and the exact date will be intimated on ACES website.

What is the interest rate for late payment of service tax?

Late Payment of Service Tax

In case of assessee, whose value of taxable services in the preceeding financial year is less than Rs. 60 Lakhs, the rate of interest for late payment of service tax in such cases would be 12%.

Does service charge go to staff?

There are no laws about splitting tips and service charges, but the British Hospitality Association (BHA) has a code of practice. … It also says that discretionary service charges and non-cash tips are usually paid to employees with tax deducted, just like wages.

Is it illegal to share tips?

Under federal law, employers can require employees to participate in a tip pool or otherwise share their tips with other employees. … However, federal law prohibits employers from keeping any portion of the tips or from including supervisors or managers in the tip pool.

Is keeping tips illegal?

Under California law, employees have the right to keep any tips that they earn. Employers may not withhold or take a portion of tips, offset tips against regular wages, or force workers to share tips with owners, managers or supervisors. Tips are also separate from wages. … Tips are also separate from wages.

Does service charge go to the staff?

There are no laws about splitting tips and service charges, but the British Hospitality Association (BHA) has a code of practice. … It also says that discretionary service charges and non-cash tips are usually paid to employees with tax deducted, just like wages.

Who pays service charge on flat?

Who pays the service charge: tenant or landlord? The service charge is paid either by the tenant or the landlord. Sometimes landlords will decide to pay the service charge themselves and factor this into the rent to cover the cost. Other landlords prefer to split the costs between themselves and the tenant.

Should you tip if there’s a service charge?

If you feel that service has been particularly bad, you can ask for the service charge to be deducted from your bill. If you have paid a service charge, then you should only tip if you think the service has been so outstanding that you wish to reward your service.

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