The Central Goods and Services Tax (CGST) officials arrested the Ex-corporator of the Thane Municipal Corporation for not paying the service tax liability. The Bhiwandi Commissionerate has arrested the former Shiv Sena member. He has been remanded in judicial custody till March 9. He served as the former standing committee chairman of the Thane Municipal Corporation.
According to Section 68(2) of the Finance Act of 1994, the central government may establish certain classes of services that must be taxed, and as a result, all service tax regulations must be followed. This indicates that everyone who is not the service recipient, or the service provider, is responsible for paying service tax. The reverse charge mechanism shifts the service tax burden from the service supplier to the service recipient.
At present, this section stipulates a rate of tax of 12 percent of the value of a taxable service. In addition education cess @ 2% and secondary and higher education cess @1% of the amount of service tax is also leviable.
An indirect tax known as service tax is really paid by the final customer. The most crucial thing to comprehend is that it only pertains to the sale of services, not goods. The VAT’s exact opposite is the service tax. Service tax will not be present in areas where VAT is applied.
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