SERVICE TAX

WHAT IS SERVICE TAX?

Indirect tax on services

Like VAT on goods

Deposited by service provider

Recovered from client

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APPLICABILITY3

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%

REGISTRATION

Fill form ST-1 in duplicate and enclose PAN Proof of address

Submit Central & Excise office Jurisdictional Division Office in metros

Application within 30 days

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HELPAGE PARTNER WS, JAN-FEB’13

WHAT IS FEE?5

Fees • Act by a charity for consideration

If

• If providing something in return…• Display donor’s name• Give business advantage to

donor

NOT FEE…

Payments

• Donations• Gifts• Grants without obligation

• e.g. specific research

Unconditional• Stipulating proper usage of funds• Furnishing of account

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NGO EXEMPTION

Exempt • (para 6.3 of circular)

If • Exempt u/s 12A

Activities• Public Health• Religion• Education• Environment / culture

Others • Turnover upto 25 lakh p.a.

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PUBLIC HEALTH

Care or counselling of terminally ill persons or persons with severe

physical or mental disability,

persons afflicted with HIV or AIDS, or

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;

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HELPAGE PARTNER WS, JAN-FEB’13

RELIGIOUS

Advancement of religion

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HELPAGE PARTNER WS, JAN-FEB’13

EDUCATION

Advancement of educational programmes or skill development relating to,- abandoned, orphaned or homeless children;

physically or mentally abused and traumatized persons;

prisoners;

persons over the age of 65 years residing in a rural area;

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HELPAGE PARTNER WS, JAN-FEB’13

ENVIRONMENT ETC.

Preservation of environment including watershed, forests and wildlife;

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HELPAGE PARTNER WS, JAN-FEB’13