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what is service tax, how much calculated on service?
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Answer Posted / yamini sahi
Service Tax is a form of indirect tax imposed on specified
services called "taxable services". Service tax cannot be
levied on any service which is not included in the list of
taxable services. The objective behind levying service tax
is to reduce the degree of intensity of taxation on
manufacturing and trade without forcing the government to
compromise on the revenue needs.
calculation:
On February 24, 2009 in order to give relief to the
industry reeling under the impact of economic recession,
the rate of Service Tax was reduced from 12 percent to 10
percent. Effective Service Tax in India now stands at 10.3%.
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