What is service tax?

Service tax is a tax imposed by government of India from different kind of service providers on different goods and services but it is actually borne by the customers. During 1994-95, when Dr. Manmohan sigh was the finance minister of India that time he introduce service tax in India on good or services. Service provider pays the taxes and recovers it from customers. It is charged to individual service providers on the basis of cash and to companies on accrual basis. This Is only charged when any company provide their services more than 10 lac per annum.if the services provided by the company are less than 10 lakh then service provider has an option that  pay the service tax if he wants or not pay the tax. This tax is not applicable in Jammu and Kashmir. After 2012, scope of service tax was increased. Air conditioned restaurants and short term accommodation provided by the hotels etc. were also in the list service tax services. Constitutional authority of service tax in India said that “no tax will be collected except by authority of law” that means government of India can impose taxes in its citizens only under the authority of constitution of India.

How to pay service tax online?

Now a day tax payer can pay service tax online or you can take a professional help to pay service tax. Now tax payers or services provides can pay their tax by using online banking Services. Steps for paying service tax online. The Assesse has to enter 15 digit assesses code allotted by the jurisdictional Commissionerate. If the code is valid then all the corresponding details of assesse will be displayed. Based on code, service tax to be paid will be automatically selected. The assesse is required to select the type of duty / tax to be paid by clicking on “Select Accounting Codes for service tax”. At a time the assesse can select up to six Accounting Codes then select the bank through which assess will pay the tax. After doing this a conformation screen will be displayed .if assess confirms the details or data filled in that online form, it will be directed to the net-banking site of the bank selected.by logging into bank account assess will pay the tax and On successful payment, a challan will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.