Change in service tax rate from 01 June 2015

The rate of service tax is being increased from 12 percent to 14 percent

There is no separate education or secondary higher education cess (submissing cess of 3%)

  1. Consequential amendments are as follows:
    • Air travel agent – 0.6% / 1.2% increased to 0.7% / 1.4% respectively for domestic and international bookings.
    • Life Insurance- 3% / 1.5% increased to 3.5%/1.75% respectively for first year premium and subsequent premium.

The effective date is yet to be notified for the following amendments:

  • Levy of Swachh bharat cess on all or any of the taxable services at a rate of 2% or lower on value of such taxable services.
  • Levy of service tax on all services provided by the government or local authority to a business entity.
Point of taxation in case of change in effective rate of service tax Invoice and payment receipt after change in effective rate Invoice prior to change but payment receipt after change in effective rate Payment receipt before change in effective rate but invoice issued later Invoice and payment receipt both prior to change in rate
If service was provided before change of effective rate POT will be date of receipt of payment or issue of invoice, whichever is earlier POT will be date of issuance of invoice POT will be date of receipt of payment —
If service was provided after change of effective rate — POT will be date of payment POT will be date of issue of invoice POT will be date of receipt of payment or issue of invoice, whichever is earlier

Rate Leviable is the rate applicable on POT.
POT- Point of taxation

What you need to know to start your business as a private limited company?

After a fabulous response to my previous article ” are you starting your business and worried about what kind of entity to start with??”, here I am posting my new article, which briefs you about “what you need to know to start your business as a private limited company”

The first thing you need to do is, think of a suitable business name which suits your business or any name you are dreamt upon.

Once you are done with the name selection, a search for the desired name to be done in ROC site, and check its availability.

Once you find that the desired name is available, you can start the registration process for registering the company.

The key requirements for registering a private limited are as follows:

  • There must be minimum two share holders ( who put money into your business as a capital ) and two directors ( who run your business ). Interestingly , the two share holders can be directors as well.
  • The proposed directors need to have DIN ( director identification number ).
  • Atleast one proposed director should have DSC ( digital signature certificate ).
  • The minimum amount require to start a private limited company is Rs.1,00,000.00 and you can use the amount for running your business.

Additional registration needed for running the business ( in common ) are as follows:

  • Permanent Account Number (PAN)
  • Professional Tax registeration
  • under shops and establishment act
  • under Vat / service act ( as applicable)
  • Tax Deduction Account Number ( TAN)

It is always advised to approach a chartered accountant or a Cs to help in registering your company with in a short duration by following all the statutory compliance.