Connect with us

Finance

When It Comes To Taxes, File Them Immediately

Service means to perform work or duties, not for oneself but for another person- to help them free of cost or for some monetary benefit. Before GST was rolled out, service tax was collected in the form VAT, or Value Added Tax.

When it comes to taxation , it can be easily said that the manufacturing states would be the ones bearing the brunt of taxation and the states inclined towards the service sector would be basking in relaxation. Sometimes manufacturing and service production can be used interchangeably which is why the manufacturing states of Tamil Nadu, Andhra Pradesh, Maharashtra, Gujrat and Karnataka accounted for more than 62% of the tax collections a few years ago. For such states service tax return filing form will be in great demand for the number of services these people offer.

How does this happen?

Services associated with manufacturing activity such as legal services provided by a  law firm, freight services, patents, insurance, consultancy, trade and accounting provides a great amount of service tax revenue

However it is very important to understand that cities and towns with a large number of small service providers like education and health, will in all probability not benefit from the GST regime. This is because education and health are not taxed and also because small service providers account for a negligible amount of service tax.

Where in India is Service Tax levied?

  1. If services are imported by Indian citizens then service tax is imposed but if it is exported then no service taxes are charged.
  2. Waters belonging to the territory of India- 12 nautical from the land.
  3. If India has an exclusive economic zone, then for that it’s is upto 200 nautical miles.
  4. Service tax is levied everywhere in India except Jammu and Kashmir.

The different categories of service tax payers are as follows:

  1. An individual or sole proprietor, running a business single handedly.
  2. A partnership
  3. A society or Co-op
  4. A registered private limited company
  5. A registered public limited company

What happens if you don’t file your service tax returns ?

  1. When you don’t submit tax returnit starts adding up and when it’s out together with fines you will begin to notice that the taxes have grown completely out of hand. This will lead to stress and complete destruction of peace. This will further lead to hiring a  professional to do your taxes for you and he/she will charge an additional amount of money for doing what you could have done if you didn’t sit on them for so long. So the moral of the story is- file your taxes on time.
  2. If you have devised a plan to completely avoid filing these taxes then you must know that after the implementation of GST, there is a monitoring structure and an IT administrative structure which can detect tax evasion in an instant.
  3. Once tax evasion is detected from your side you will be imposed with a number of penalities and a probable jail sentence upto 5 years. This usually takes place when it comes to fraudulent cases.

Continue Reading

Recent Posts

Home Improvement1 week ago

Mastering The Maintenance: Breaking Down The Basics Of Your Ducted Heating And Cooling System

Welcome, fellow home enthusiasts! Ever find yourself lost in the labyrinth of your ducted heating and cooling system? Have you...

Business3 weeks ago

The Invisible Hands: Unveiling How Food Distributors Influence the Quality of Our Foods

Ever found yourself wondering why the tomatoes in your salad taste particularly fresh or why your preferred brand of coffee...

Marketing3 weeks ago

Webflow CMS: A Comprehensive Guide

Webflow is a powerful tool that allows you to create and manage dynamic websites without needing to code. It’s a...

Business3 weeks ago

The Three Most Important Benefits You Should Offer To Your Employees

Offering your employees a range of benefits on top of regular salary increases will really help to show that you...

Business1 month ago

Business Tips For Protecting Your Finances During A Recession

In 2024, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Green & Energy2 months ago

Air Conditioning Installation: What You Need to Know

When it comes to getting an air conditioning unit installed, can significantly improve your comfort and home environment, especially during...

Marketing2 months ago

Marketing Tips For A Gym Wear Brand

When starting a gym wear brand, there are a few things you need to do and one of them is...

General2 months ago

Social Media Marketing: What Are All The Types?

Social media marketing is a tool that is a must-have in today’s digital age. it’s very rare that businesses can...

Business3 months ago

How To Become A Property Developer

There are several reasons why an individual will want to become a property developer. One of the main reasons for...

Business3 months ago

Remote Delivery Innovations: Case Studies from Leading E-commerce Brands

People have gone through much change in the past few years when it comes to online shopping. Nowadays, when delivery...

Business3 months ago

Why are Brits turning to online-only banks?

For years, large, conventional banks held all the aces when it comes to citizens’ finances in the UK. HSBC, Lloyds...

5 Important Web Design Considerations to Make For Better SEO 5 Important Web Design Considerations to Make For Better SEO
Tech4 months ago

5 Important Web Design Considerations to Make For Better SEO

Ever since the birth of search engines, practices in optimising websites for better search rankings have changed considerably. Where it...

SEO4 months ago

The Importance of Local SEO for Small Businesses

There are many different types of businesses and all of them will require online marketing however, with a small business,...

General4 months ago

Understanding The Unsung Heroes: Cool Rooms And The Importance Of Regular Repairs

Everybody loves a breath of fresh air when entering a superstore! But have you ever wondered who’s working backstage to...

Home Improvement8 months ago

How To Add More Value To Your Home

If you have some spare cash in the bank, it is likely you would like to spend it on your...

Categories

Archives

Trending