Service Tax

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A Service Tax can be defined as an indirect tax levied on specific services known as "taxable services". It cannot be imposed on any service that is not included in the list of taxable services.

The indirect tax is governed by the Central Excise Commissionerates working under the Central Board of Excise & Customs (CBEC), Department of Revenue, Ministry of Finance. Being an indirect tax, it is payable by the service provider, though it is borne by the recipient of service

The list of services that will be tax is decided by the government every year and in the last decade, service tax been levied on many services. This tax also contributes to the government's revenue. The rate of service tax is also determined by the Government and can be changed every year. Service tax is generally levied on the gross value of any service rendered by the service provider.

Companies and Individuals take help of professional accountants for preparing and filing service tax returns. This helps save time and also avoid any error in calculation. These professionals can also acquaint companies with latest changes made in the Service tax as every year, governments widens its list of taxable services.