Similar to excise duty, Service
payable on goods that manufactures and payable on the services offered. The
Central Government of India levies it on services offered excluding services
covered under negative list and considering the Place of Provision of Services
Rules from the person liable to pay service tax. The rate of service tax
applicable from 1st June 2015 is 14%.
It is inclusive of SHEC and education cess. It
must be deposited on quarterly/monthly basis and paid either by manually
depositing in the bank or through online payment of service tax. In case of
excess payment of tax by the service provider with the government, the service
provider can either adjust the amount paid in excess, or can claim refund of
the excess tax deposited. The residents of Jammu and Kashmir are however free
from paying service tax.