GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Service tax is payable on the gross amount
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True
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False
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Not sure
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May be
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Explanation:
Detailed explanation-1: -If a service was provided, then the service provider become liable to pay service tax. On the other hand, as per the regulation, a service provider is also liable to pay service tax on service agreed to be provided. So, services which have only been agreed to be provided but are not yet provided are also taxable .
Detailed explanation-2: -Service tax, which started out at a nominal 5%, now stands at 15%. It was increased to 14% for transactions that happened on or after 1 June 2015 and then for transactions that occurred on or after 15 Nov 2015, the new Swachh Bharat Cess at 0.5% was also added to the Service Tax.
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