Verification by the Tax Department Yes, service tax returns were subject to verification by the department. The verification ensured that the correct tax was paid and returns were accurately filed. It was part of routine compliance monitoring under the Finance Act,...
Mandatory Invoice Fields Name, address, and registration number of the service provider. Name and address of the service recipient, if available. Invoice number and date of issue in serial and chronological order. Description of taxable service provided. Service tax...
Definition and Scope of Exemption Small service providers were granted exemption from service tax under a specific scheme. The exemption was notified through Notification No. 33/2012-ST, and earlier notifications. It applied to those whose aggregate value of taxable...
Exemption Based on Turnover Yes, a threshold limit was prescribed for exemption from service tax. Service providers were exempt from payment if their total taxable service turnover did not exceed ₹10 lakhs in a financial year. The exemption was available under the...
Mandatory Registration Requirement Professionals providing taxable services were required to register under service tax. Registration became mandatory once the aggregate value of services exceeded ₹9 lakhs in a financial year. It applied to individuals, firms, LLPs,...
General Applicability to Professionals Yes, service tax was applicable to professionals providing taxable services. It applied to individuals, firms, LLPs, and companies engaged in professional work. Professional services were treated as commercial services under the...
Defined Statutory Time Frame The Finance Act, 1994 provided a structured time limit for issuing service tax notices. For standard situations, the notice could be issued within 18 months from the relevant date. This time frame ensured timely communication between the...
General Applicability of Service Tax on Advances Yes, service tax was applicable on advances received for taxable services. The tax liability arose at the time of receipt of the advance, not after service delivery. This rule applied regardless of whether the service...
Legal Framework for Valuation Valuation of taxable services was governed by Section 67 of the Finance Act, 1994. Supplementary provisions were defined in the Service Tax (Determination of Value) Rules, 2006. The valuation rules applied to all taxable services unless a...
Understanding Composite Supply A composite supply involved both services and goods or multiple services bundled together. It was taxed under service tax law when the primary nature of the transaction was a service. The value of the taxable service had to be identified...