Is service tax applicable on education cess?
The service tax rate now is consolidated rate as education cess and secondary higher education cess are subsumed with 2% of “Swach Bharat Cess(0.50%)” has been notified by the Government. …
Is service tax applicable on interest income?
Section 66D (n) of the Act inter-alia provides that services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or deposit. Therefore interest on delayed payment is not to be included in taxable value for service tax. …
Can interest on service tax be waived?
Service Tax Penalty Relaxation after Order However, under the new provision, 75% of the penalty can be waived, if service tax payment and interest due is paid within 30 days of order. In case of fraud, 75% of the penalty can be waived, if service tax payment, interest due 25% penalty is paid within 30 days of order.
Can interest on service tax excess service tax amount?
This section provides that where an amount has been collected in excess of the tax assessed or determined and paid for any taxable service from the recipient of such service, the person who is liable to pay such amount, shall in addition the amount, be liable to pay interest at such rate not below 10% and not exceeding …
Can interest be more than service tax amount?
According to Section 75, of the Finance Act, 1994, “Every person, liable to pay the tax in accordance with the provisions of Section 68, or rules made thereunder, who fails to credit the tax or any part thereof to the account of the Central Government within the period prescribed shall pay simple interest at such rate …
What services are exempted from service tax?
Any service that is provided or offered free of cost is exempt from service tax. Taxable services that are provided to diplomats and their family members for official purposes are exempt from service tax.
What is the accounting code for Education Cess?
Service Tax Accounting Codes. The Accounting Code for ‘Education Cess’ is 00440298’ for all services, and that for ‘Secondary & Higher Education Cess’ is 00440426 for all services. ‘Other receipts’ indicates the code in case of interest and penalty on delayed payment of service tax.
Is the education cess subsumed in service tax?
Till the time the revised rate comes into effect, the ‘education cess’ and ‘secondary and higher education cess’ will continue to be levied in Service Tax. Levy of both education cesses will continue to be levied on income tax and customs as these have not been subsumed in tax rates.
Can a department charge interest on delayed payment of Education Cess?
Section 75 does not authorize the Department to charge interest on delayed payment of education cess. In JK Synthetics v.
Is the cess included in Central Excise Duty?
“As part of the movement towards GST, I propose to subsume the Education Cess and the Secondary and Higher Education Cess in Central Excise duty. In effect, the general rate of Central Excise Duty of 12.36% including the cesses is being rounded off to 12.5%”.