What is service tax in simple words?
Definition: Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994.
How do you explain tax to a child?
Tax is money that people have to pay to the government. The government uses the money it gets from taxes to pay for things.
What does tax service mean?
Tax Services means providing advice to another person with respect to the application of tax law, completing or assisting in completing a document to be submitted to SARS by another person in terms of the tax law.
Who is eligible for service tax?
Although Service Tax is required to be paid only when the aggregate value of services provided exceeds Rs. 10 Lakhs in a financial year, the service tax provider is required to apply for Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs.
Why should kids learn about taxes?
If students could learn to file their own taxes in the classroom, they could be better prepared in their financial futures. Learning new skills, no matter what they might be, certainly helps adolescent brain development, but not everything taught in school is necessary.
What is sales tax kid friendly?
A sales tax is a fee that is added to the price of an item. When you buy an item that is taxed, you pay the cost of the item plus the sales tax. Governments use sale taxes to pay for roads, schools, emergency, and other services for citizens.
What is the tax service fee?
What Is a Tax Service Fee? A tax service fee is a legitimate closing cost that is assessed and collected by a lender to ensure that mortgagors pay their property taxes on time. Tax service fees exist because lenders want to protect their access to collateral if a borrower defaults.
What is a tax service fee FHA?
Tax Service Fee – ($50) This fee is paid to research the existing property taxes for the property and to see whether the taxes have been paid to date or if they have been paid for future months. The taxes will need to be settled at closing based upon the findings of this research.
Which service is tax free?
Any service that is offered to any international organisation or to the United Nations is exempt from service tax. Any service that is offered to units of Special Economic Zones or to Special Economic Zone developers is exempt from service tax.
How is your service tax mandatory?
Doing these payments online is mandatory if your payments exceed Rs 1lakh in a year. Service tax has to be deposited with the government either quarterly or monthly based on whether you are an individual/company/partnership. Once you obtain a Service Tax Registration number, return filing is compulsory for you.
What is the definition of a service tax?
Service Tax was earlier levied on a specified list of services, but in the 2012 budget, its scope was increased. Services provided by air-conditioned restaurants and short term accommodation provided by hotels, inns, etc. were also included in the list of services.
What is the significance of service tax in India?
Service tax has assumed significance in recent years as one of the major contributors to the Government exchequer. The law has expanded its reach to cover most transactions of services and now pervades all sectors of the economy. Various reforms have been carried out in the past
What kind of tax is the goods and Services Tax?
The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption.
What’s the kids definition of the word tax?
Kids Definition of tax (Entry 2 of 2) 1 : to require to pay money to a government for public use 2 : to cause a strain on Fighting to survive the storm taxed their strength.