Value Added Tax/Service Tax
Service Offerings
  • Registration of VAT and Service Tax
  • Monthly/quarterly/half yearly calculations of VAT and Service Tax liability
  • Online filing of VAT and Service Tax return
  • Tax advice & consultation to optimize your tax liability
  • Get reminders to comply within the due dates
Process
  1. Provide your details and get a call back to discuss your tax situation
  2. Email your tax documents to the expert upon confirmation of the service
  3. Pay fees to get your return diligently prepared and filed by our expert
  4. Year round access to your tax expert
Pricing
Value Added Tax
Rs. 1,499 + taxes per return filing
  • Calculation of your monthly VAT payment
  • Filing your VAT monthly/quarterly/annual return
  • Get experts advice for optimizing your tax liability throughout the year
Service Tax
Rs. 2,999 + taxes per return filing
  • Calculation of your monthly/quarterly Service Tax
  • Filing your Service Tax quarterly/annual return (ST 2)
  • Get year round expert advice for optimizing your tax liability
Frequently Asked Questions

Find answers to the most frequently asked questions on Value Added Tax/Service Tax in India.

VAT is a kind of consumption tax levied on sale of goods. VAT is an integral part of the GDP of any country. It is an indirect form of tax which is paid to the government by customers but via producers or trader of goods.

Any firm making a turnover of more than Rs. 5 lakhs per annum is required to register for VAT payment. VAT is charged on the sale value of the taxable goods. As its name suggest it is tax levied on value addition, therefore each seller in the product’s journey till it reaches the ultimate consumer, will be required to charge VAT on the value addition (his gross profit) made by him. Each seller will be liable to collect and pay the VAT on the value addition made by him in the product price. His liability will be equal to VAT chargeable on the price collected for the taxable goods less VAT paid by him on purchase of goods during the period.

VAT system of taxation was adopted with an intention to avoid multiple point of taxation by allowing the credit for input taxes paid on purchase of taxable goods.

Maharashtra State:

If any dealer fails to pay VAT on or before due date interest on late payment is calculated as below w.e.f. 1st December 2015

• Interest is charged @ 1.25% per month for delay up to 1 month

• If the delay exceeds a month, interest is charged @ 1.50% per month for the next two months of delay (i.e., 2nd & 3rd month)

• If the tax is not paid even after a delay of 3 months, interest is charged @ 2% per month

Karnataka State:

Delay in remittance of VAT collected attracts interest @ 1.5% per month (18% p.a.)

Delhi:

Delay in remittance of VAT collected attracts interest @ 1.25% per month (15% p.a.)

Haryana:

Late payment interest @ 1.5% per month for delay up to three months and 3% per month if the delay is beyond three months will be payable.

Telangana:

It is charged @ 15% p.a. simple interest computed on a daily basis

Gujrat:

Delay in remittance of VAT collected attracts interest @ 1.5% per month (18% p.a.)

CST is an indirect tax which is levied by the Central Government on taxable value of inter-state sale of goods made by registered dealer in ordinary course of business. CST is chargeable only if there is actual moments of goods from one state to other state, on the other hand VAT is charged on the sale of goods within the same state. However mere transfer of goods to a branch or another unit of same entity does not attract CST. Rate of CST is 2% against C form for all the states.

VAT (Value Added Tax) is governed by respective state Acts. Every state has a separate and distinct VAT act and rates reserved for their state.

Calculation of VAT liability:

Step 1: Determine your output tax (i.e. the VAT you charged on your sales/supplies). Make sure you apply the correct tax fraction.

Step 2: Calculate your input tax (i.e. the VAT you paid on any of those purchases)

Step 3: Difference between 1 & 2 is VAT payable or refund of excess tax paid

Calculation of CST liability:

Taxable value of goods sold X Tax rate as applicable as per below situation:

If buyer is registered dealer and able to issue Form C then rate is 2%.

If buyer is unregistered then then CST rate is equal to local VAT.

If buyer is registered but not able to issue Form C then CST rate is equal to local VAT.

As it’s name suggests, Service Tax is a tax payable on provision of services by a service provider. Service Tax is an indirect tax which is collected by the provider of service from the consumer of the service. Generally the service provider (except under reverse charge scheme) is liable to levy, collect and pay to the government, the Service Tax at the applicable rate. However, the service provider can shift the burden of service tax on the consumer of service (also referred to as recipient of service). Currently service tax is chargeable on provision of most of the services unless that service is covered under negative list.

The due date for payment of service tax is separate for Individual or Partnership Firms and others.

• For Individual or Partnership Firms

The due date for payment of Service Tax in case of Individual or Partnership Firm is 5th of the following quarter in which the payment is received. However, if the payer opts for online payments, he is given a grace period of 1 day. So, the due date for payment of Service Tax if this case is 6th of the following quarter.

• For Others

For all other Service Taxpayers (except Individual and Partnership Firms), the due date for payment of Service Tax is 5th of the following month in which the Service Tax is collected. However, if the payment is made online – the due date for payment of Service Tax becomes 6th of the following month.

Exception: – Service Tax collected for the month or quarter ending March shall be payable by 31st March of the relevant year.

The interest rate for late payment of Service Tax is as follows:-

• 15% interest if Service Tax not collected and not deposited

• 24% interest if Service Tax collected but not deposited

In case of assessee, whose value of taxable services in the preceding financial year is less than Rs. 60 lakhs, the rate of interest for late payment of Service Tax would be 12% and 21% respectively.

Service Tax Return needs to be filed twice in a Financial Year.

For the period from October to March, the due date for filing Service Tax Return is 25th April.

For the period from April to September, the due date for filing Service Tax Return is 25th October.

Failure to file Service Tax on time or not filing at all can attract penalty in the following way:

• Delay up to 15 days in filing can invite penalty of Rs. 500.

• Delay between 15 to 30 days can invite penalty of Rs. 1,000.

• Delay of more than 30 days can invite penalty of Rs. 1,000 plus Rs. 100 per day beyond 30 days.

• The maximum amount of late fees payable by taxpayer cannot exceed Rs. 20,000.

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