is a duty on production or manufacture of excisable goods in India. Thus
taxable event is production or manufacture of excisable goods in India. However,
duty is usually payable when it is removed from any place where they are
produced or manufactured.
is tax on provision of services. For a layman it would mean taking up any work
on behalf of others, professional assignments or rendering intangible benefits
to others. The Service Provider will can collect this Service Tax amount from
the consumer of service and deposits the same with the Central Government. This tax would be applicable on all services except the negative list of
provider of the service in India (except J&K where the law is not
applicable) has to register itself if the value of services provided during a
year is more than Rs. 9 Lakhs and Input Service Distributor, but the tax would
be payable only when the value of services provided is more than Rs. 10 Lakhs.
check Service Tax Applicability
Check whether Activity has been done by ONE
PERSON TO ANOTHER
Check whether activity involves
Check whether activity involves outside the
scope of exclusion clause:Transfer of Title in goods or immovable
property;Transfer which constitutes deemed sale;
Transaction only in
Money or actionable Claims;
Services provided by
employee to employer;
If result of the above
three test is affirmative; activity will be termed as Service otherwise
activity will be outside the ambit of Service Tax
Check whether Place
of Provisions of Service falls in taxable territory
If result of above
two tests is affirmative, service will be termed as Taxable Service falls
under Mega Exemption Notification or any other exemption notification.
If result of supra
test is affirmative, service will be termed as Exempted Service otherwise
service tax will apply.
In nutshell, Service
Tax will apply if an activity (except those mentioned in exclusion clause)
has been provided/performed in taxable territory by one person for another
for consideration and is neither covered in negative list nor under Mega
Exemption & other exemption notifications.
Due Dates of Payment of Service Tax
Constitution of Person Liable to Pay Service
Individual / Proprietary Firm / Partnership
Firm including LLP
5 / 6th July
5 / 6th May
5 / 6th June
5 / 6th July
5 / 6th October
5 / 6th August
5 / 6th September
5 / 6th October
5 / 6th January
5 / 6th November
5 / 6th December
5 / 6th January
5 / 6th February
5 / 6th March
Note: In case on online payment of Service
Tax 6th and otherwise 5th.
Every assesse shall submit the half yearly return by the 25th
of the following month i.e. 25th October (for April to September)
and 25th April (for October to March).The assesse is required to
file the service tax return even if the value of taxable services provided or
the tax thereon is Nil.Return can be revised within 90 days of filling the
Value Added Tax
VAT is a form of indirect tax imposed on only goods sold within
a particular state. Which means the buyer and seller should be in the same
VAT or Value Added Tax is a tax added to the goods at each step
of the production and distribution process. VAT tax however is ultimately paid
by the end consumer, as dealers are allowed to collect VAT tax on their sales,
retain the tax paid on their purchases and only pay the balance to the
Government. Unlike service tax, VAT is still governed by the State Government
by separate VAT act passed by each of the state in India under the guidelines
issued by an Empowered Committee to ensure uniformity. Therefore, the
procedure for VAT Registration, the VAT Rates, due date for VAT payment,
deadline for VAT Return Filing and other modalities differ from State to State.
registration is compulsory for dealers having turnover exceeding 5 lakhs (or
increased limit of 10 lakhs for some states). On registration the dealer is
allotted a unique 11 digit TIN (Tax Payers Identification Number).
Central Sales Tax
VAT is a form of indirect tax imposed on only goods sold from
one state to another state. Which means the buyer and seller should be in the
dealer under CST is not governed by turnover. It is compulsory for a dealer to
get registered if he affects an inter-state sale.
Customs Duty is a type of indirect tax levied on goods imported into India as well as on goods exported from India. Taxable event is import into or export from India. Import of goods means bringing into India of goods from a place outside India.
tax is the tax charged by the state governments in India. Anyone earning an
income from salary or anyone practicing a profession such as chartered
accountant, lawyer, doctor etc. are required to pay this professional tax.
professional tax is similar to income tax except it is taken by state
government. Unlike income tax return filing you need not to file return professional tax return not
every state charges this tax. According to law, any state,
government cant charge maximum Rs 2,500 per year as professional tax. It is charged according to the income slab. It is eligible for income tax saving. You can deduct the professional tax paid from your
gross salary for income tax calculation.
It is the
duty of every employer to collect the professional tax from its employee and
deposit the total amount with the municipal corporation. The employer deducts
it from the salary of the employee every month.
Profession Tax in Maharashtra
Maharashtra uses a full limit of
professional tax. Here, Most of the employees pay Rs 2,500 annually as PT.
It has given some relaxation to those who earn very less or involved in petty
jobs. All other wage earners and white collared professionals are
charged Rs 2,500 Annually.
Professional Tax Rate Per Month
Up to Rs 7,500 (Rs
10,000 For Women)
From Rs 7,500-
Above Rs 10,000
Rs 200 per month,
but Rs 300 in February
The Indian Government is actively working towards implementation of a common indirect tax by the name of GST which is expected to be applicable soon.GST will merge the major indirect taxes which will reduce the hassle of compliance to great extend