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Dear Sir/Ma’am, Please tell me everybody how can calculate the service tax laibility of a company and tell me about cenvat credit of service tax. Thanks & Regards, Virendra Sharma
From India , Gurgaon
Hi,

Service tax is calculated on the amount of taxable services provided by the service provider providing taxable services. Service tax comes under the preview of Indirect tax. It is also called consumption based tax. Service tax is calculated on the amount of taxable service at the rate of 10.30%. This amount of service tax is required to be collected by the out put service provider from his customers and is required to be deposited with the government authorities as per the rules prescribed in this behalf. This tax is called output service tax in general.

however the provider of output services can also take the benefit of service tax paid by him on the input services procured by him for the purpose of providing output services. For example, a Chartered Accountant who is required to pay service tax as out put service tax has collected form his clients out put service tax can take the benefit of service tax paid on various services used in providing such output services. It can be telephone bills, recruitment agency bills, professional bills on which service tax is levied. In short, any services which is used in or in relation to the providing of output service can be used for the purpose of availing the Cenvat credit. In case of any other query, please contact me on the following address:

From India , Delhi
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