Transcript Service Tax - AccountAid India

S ERVICE TAX
W HAT
2

IS
S ERVICE TAX ?
Indirect tax on services

Like VAT on goods

Deposited by service provider

Recovered from client
A PPLICABILITY
3
Service ?
• Any Act done for fees, etc.
Coverage ?
• All services, except negative list
• Codes for 119 services
• All others under residual
Exemption
• For some NGOs
Charge on
• Fees and Expenses
Tax Rate
• 12.36%
R EGISTRATION
4
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Fill form ST-1 in duplicate and enclose
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
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Submit
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
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PAN
Proof of address
Central & Excise office
Jurisdictional Division Office in metros
Application within 30 days
HELPAGE PARTNER WS, JAN-FEB’13
W HAT
5
IS FEE ?
Fees
• Act by a charity for consideration
If
• If providing something in return…
• Display donor’s name
• Give business advantage to
donor
N OT F EE …
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Payments
Unconditional
• Donations
• Gifts
• Grants without obligation
• e.g. specific research
• Stipulating proper usage of funds
• Furnishing of account
NGO E XEMPTION
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Exempt
If
Activities
Others
• (para 6.3 of circular)
• Exempt u/s 12A
• Public Health
• Religion
• Education
• Environment / culture
• Turnover upto 25 lakh p.a.
P UBLIC H EALTH
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
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Care or counselling of
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terminally ill persons or persons with severe
physical or mental disability,
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persons afflicted with HIV or AIDS, or
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persons addicted to a dependence-forming
substance such as narcotics drugs or alcohol; or
Public awareness of preventive health,
family planning or prevention of HIV
infection;
HELPAGE PARTNER WS, JAN-FEB’13
R ELIGIOUS
9
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Advancement of religion
HELPAGE PARTNER WS, JAN-FEB’13
E DUCATION
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Advancement of educational
programmes or skill development
relating to,
abandoned, orphaned or homeless children;
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physically or mentally abused and
traumatized persons;
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prisoners;
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persons over the age of 65 years residing in
a rural area;
HELPAGE PARTNER WS, JAN-FEB’13
E NVIRONMENT
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ETC .
Preservation of environment including
watershed, forests and wildlife;
HELPAGE PARTNER WS, JAN-FEB’13