Service Tax

Excluding a negative list, Service tax is applicable on all services. From 1st July, 2019, there has been a complete overhaul on the way Service-tax was perceived. The changes are far-reaching, touching many lives with loads of questions left unanswered or the law today, raises as many as questions, as there are answers. We strongly recommend a complete Service-tax scan. The scan has to be of all assets, liabilities, revenues, expenses, as well as operations. Numbers of notification and references have made Service-tax law very complex. Yet, there are tailor-made solutions that can minimise Service-tax liabilities within the four corners of law. Procedures galore, rules revamp and numbers of notifications under the Service-tax law have necessitated to correctly identifying applicability and the reference of the Service-tax. Concepts like Reverse charge mechanism; cross-references with the custom laws require deep understanding of the subject. Even the slightest casual approach could result in inadvertent breach. From the point of view of business, it is important to plan and monitor this particular aspect critically and regularly, since it can have significant impact on margins and compliance.

For those to whom service tax becomes applicable, they need to ensure that service tax is properly collected and paid to the credit of the government within the prescribed time limit. They also need to ensure that all those inputs for which credit could be availed in respect of service tax are judiciously taken and all the same, they are adjusted against the service tax liability for optimal utilization of service tax.

For those to whom excise become payable and who could adjust service tax against their excise obligations, should ensure that service tax credit is so taken and adjusted against excise obligations.

We help clients in identifying expenses qualifying for service tax credits and mapping them to link with utilization. We also provide services of monthly service tax compliance assurance.