Important Service Tax Interview Questions

Only following service Providers can take input of Rent a cab

• transportation of passengers;(Taxi Service) or
• renting of such motor vehicle;(Cars on Rent) or
• imparting motor driving skills;(Car Driving schools)

(All these directly use Cab for provididing these services

From 1.4.2015 Reverse charge introduced in case of Aggregator Service Lottery Agent Service Mutual Fund Agent Service Also in case of Manpower Service of Non COmpany Service Provider and receiver earlier paid 25% and 75% now Service Provider did not pay anything and service receiver paid 100% https://www.teachoo.com/475/1153/Different-Services-under-Reverse-Charge-Amendment/category/-Reverse-Charge-Amendments/

Reverse charge introduced in case of Aggregator Service Lottery Agent Service Mutual Fund Agent Service Also in case of Manpower Service of Non COmpany Service Provider and receiver earlier paid 25% and 75% now Service Provider did not pay anything and service receiver paid 100%

Before 1/10/2014 In case of Motor Cab (rENT a cab service) in case service provider doesnot take abatement, Provider and receiver paid 60% and 40% From 1/10/2014,Provider and receiver paid 50% and 50% Learn more https://www.teachoo.com/476/1153/Different-Services-under-Partial-Reverse-Charge/category/-Reverse-Charge-Amendments/

Earlier there was 75% Abatement on Goods Transport Service (Freight Service) Now,there is 70% Abatement Current Rate =15%*30%=4.5% Learn More https://www.teachoo.com/436/148/Difference-between-Exemptions-and-Abatements/category/Basics/

Swachh Bharat Cess came into effect from 15 Nov 2016 It is charged on Amount of taxable service https://www.teachoo.com/3875/320/What-is-the-Rate-of-Service-Tax--for-2015-16-and-2016-17/category/Basics/

New Service tax Rate is 15% (14% Service tax+0.5% Swachh Bharat Cess+0.5% Krishi Kalyan Cess) from 1 june 2016 Learn more https://www.teachoo.com/3875/320/What-is-the-Rate-of-Service-Tax--for-2015-16-and-2016-17/category/Basics/

Not relevant now as Service tax is now paid electronically through epayment

No

It can be used for payment of Service tax of June 2016 whose due date is July 6,2016

Service tax of May 2016 is due for payment on June 6 2016

Yes

Service tax is normally payable on Bill Issued or Advance Received which ever is earlier

However some persons pay it only on cash basis

Refer

https://www.teachoo.com/4008/329/Service-Tax-Payable-On-Payment-Basis-In-Some-Cases/category/Challan-Procedure-and-Due-dates/

https://www.teachoo.com/469/156/Time-limit-for-issue-of-invoice/category/Issue-of-Invoice/

For Due dates of Challan

https://www.teachoo.com/873/329/Form-Name-and-Due-Date-for-Companies-and-Non-Companies/category/Challan-Procedure-and-Due-dates/

For Due Dates of Return

https://www.teachoo.com/875/333/Form-Name-And-Due-Date-/category/Return-Procedure-and-Due-Dates/

Refer

https://www.teachoo.com/3874/356/Different-types-of-Service-Tax/category/Concept-of-RCM-(Reverse-Charge-and-Partial-Reverse--Charge)/

https://www.teachoo.com/882/356/Comparison-of-Normal-Charge-and-Reverse-Charge/category/Concept-of-RCM-(Reverse-Charge-and-Partial-Reverse--Charge)/

There can be 2 cases

1. Service falls under Normal Charge
2. Service falls underReverse Charge

1.Service falls under Normal Charge

In this case,Service Provider is responsible to pay Service tax

Suppose Service provider gives bill of 100000 and fails to charge Service tax,

it will be assumed that bill of 100000 includes Service tax of 15%

So

Amount=100000*100/115=86957

Add Service tax @ 15%=13043

Total=100000

2. If Service falls under Reverse charge

Suppose Service provider gives bill of 100000 and fails to charge Service tax,

In this case, Service receiver has to pay him 100000+pay 15000 Service tax to Govt

In case,Service provider gives bill of 100000 + 15000 Service tax,in this case also Service receiver has to pay him 100000+pay 15000 Service tax to Govt

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