Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TDS :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: list of goods taxed at 4% :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: empanelment :: form 3cd :: Central Excise rule to resale the machines to a new company :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ACCOUNTING STANDARDS
 
 
Service Tax »
 Simple tax made complex
 Govt may review monthly GST return filing process
 Central Goods and Services Tax (Eleventh Amendment) Rules, 2017
 Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017
 Composition Scheme - the Central Goods and Services Tax (Removal of Difficulties) Order, 2017
 Govt asks taxpayers to file GST return for July by Tuesday
 FAQ On Government Services Under GST
 Income Tax Appellate Tribunal, Visakhapatnam Bench List Of Division Bench Cases Posted Before During The Period From 03rd Octombar To 13th October , 2017.
 Facility of LUT extended to all exporters / registered persons subject to conditions
 GST implementation – Hasty turns out nasty
 What is Goods and Services Tax Network (GSTN)?

Service tax cut will increase money in hand
February, 25th 2009

The government, it seems, is trying to put some money back into your pockets. This, of course, is to enhance your purchasing power. Be it your credit card, telephone bill, insurance premium and mutual fund units among other things, you would save around 2% of the service tax you would have paid otherwise. The government on Tuesday has reduced service tax by 2% to 10% (exclusive of the surcharge).

You have to pay service tax on almost all services - except for a few like legal and medical services. So, a reduction in the tax rate would mean that you would save a little on taxes, says Gaurav Mashruwala, a certified financial planner. "One may not be saving much but what is more important is the government's effort to put money in people's hands so that they would spend more. This would obviously have an impact on the overall economy,'' says Devendra Nevgi, CEO and CIO with Quantum Mutual Fund.

The 2% saving may not look much if you take it in isolation. But together with your mutual fund investment, insurance premium, banking transactions, commission to travel agent, and so on, you can hope to save a decent sum. "The rate cut wont have a major impact, but whatever service taxes a fund pay - say, to custodian, agents, advertisement and marketing - will come down marginally,'' says Nevgi.

Though minimal, the cut in service tax will also benefit mutual fund investors. All fund houses charge investors what is called AMC fee - an annual fee for managing their funds. "Usually in equity funds, the average AMC fee is 2.25-2.50%. All fund houses pay service tax to the government on the AMC fee they charge. With a cut in the service tax, a slightly lower AMC fee will be charged to the investors,'' said Sandeep Dasgupta, CEO, Bharti AXA MF.

The returns from your insurance policies will also get a boost thanks to the reduction in service tax. The 2% cut is good for insurance customers. Insurance companies will pay 2% less on premium allocation and administrative charges. "This will enhance the IRR (internal rate of return) from the investment for investors,'' says an official with ICICI Prudential Life Insurance.

Those of you who have the habit of revolving credit on the credit card can also save a bit. This is because almost all services offered by banks attract service taxes. Though everyone has noticed the service levied on credit card outstanding, other heads where the tax is applicable are not known. "The list is huge be it average quarterly balance, return of cheque, demand draft, time transactions - all these activities attract service charges,'' says an official with Axis Bank.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions