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Answer Posted / mayur babaria
service tax is an indirect tax charged on certain services
provided by certain category of persons.
whenever an organization provided any taxable services,it
has to charges service tax on the value of such service
providers.
for example:
certain type of educational institute providing training
service to you.so it will charge service tax on the total
amount of the course fee paid to institue.suppose the
current rate of service tax is 10%+2% for education cess+1%
higher edu cess .
Total course fee is RS.35000
the amount of ser.tax 3605(Rs.35000*10.3%)
the total amount payable is RS.35000+Rs.3605=38605
The institute will be collect Rs.38605 from you and
deposit Rs.3605 to the government
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