GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Charge of service tax is in relation to service provided or to be provided
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True
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False
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May be
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Not sured
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Explanation:
Detailed explanation-1: -A service charge is like a payment for the services rendered and is not imposed by the government. Usually in the range of 5% to 15%, a service charge is added to the total bill amount and can be refused by a customer. However, restaurants have made it like an obligatory tip that a customer is required to pay.
Detailed explanation-2: -The rate of service tax was increased to 12% by Finance Act, 2006 w.e.f 18.4. 2006. Finance Act, 2007 has imposed a new secondary and higher education cess of one per cent on the service tax w.e.f 11.5. 2007, increasing the total education cess to three per cent and a total levy of 12.36 per cent.
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