A nation is a sovereign entity. Any risk arising on chances of a government failing to make debt repayments or not honouring a loan agreement is a sovereign risk. Description: Such practices can be resorted to by a government in times of economic or political uncertainty or even to portray an assertive stance misusing its independence.
A government can resort to such practices by easily altering. A recession is a situation of declining economic activity. Declining economic activity is characterized by falling output and employment levels. Generally, when an economy continues to suffer recession for two or more quarters, it is called depression. Description: The level of productivity in an economy falls significantly during a d. It is always measured in percentage terms.
Description: With the consumption behavior being related, the change in the price of a related good leads to a change in the demand of another good. Related goods are of two kinds, i.
Description: Apart from Cash Reserve Ratio CRR , banks have to maintain a stipulated proportion of their net demand and time liabilities in the form of liquid assets like cash, gold and unencumbered securities. Treasury bills, dated securities issued under market borrowing programme. In the world of finance, comparison of economic data is of immense importance in order to ascertain the growth and performance of a compan.
Description: Institutional investment is defined to be the investment done by institutions or organizations such as banks, insurance companies, mutual fund houses, etc in the financial or real assets of a country. Simply state. Marginal standing facility MSF is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely. Description: Banks borrow from the central bank by pledging government securities at a rate higher than the repo rate under liquidity adjustment facility or LAF in short.
The MSF rate is pegged basis points or a percentage. Description: If the prices of goods and services do not include the cost of negative externalities or the cost of harmful effects they have on the environment, people might misuse them and use them in large quantities without thinking about their ill effects on the env.
These taxable services are specified in Section 65 of the Finance Act, Generally, the liability to pay service tax has been placed on the 'service provider'. However, in respect of the taxable services notified under Sec. The following services have been notified under Sec. In the following situations, the liability to pay service tax is as follows :. From Example: Suppose the value of taxable service is Rs.
The table also shows the 'accounting heads' for each category service, for the purpose of payment of service tax:. The sub-head 'Other receipts' is meant for interest, penalty on delayed payment of service tax.
Provided that where a person commences the business of providing a taxable service after such service has been levied, he shall make an application for registration within a period of thirty days from the date of such commencement. In case a service recipient is liable to pay service tax, as detailed at para 1. The government website www.
Delhi and. There are separate service tax commissionerates in Mumbai, Chennai, Delhi , Kolkata, Bangalore and Ahmedabad as mentioned in the previous chapter. Provided that nothing contained in this sub-rule shall have any effect on the registration granted to the premises or offices having such centralized billing or centralized accounting systems, prior to the 2 nd day of November, He can simply fill in the Form S.
The new form may be submitted to the jurisdictional Superintendent for necessary endorsement of the new service category in his Registration certificate. Every person providing taxable service is required to issue within 14 days of completion of service or receipt of payment towards value of service, whichever is earlier an invoice, a bill or challan signed by him or a person authorized by him. Such invoice, bill or challan should be serially numbered and should contain following information:.
Rule 4B of Service Tax Rules, The records including computerized data as maintained by the assessee in accordance with the various laws in force shall be accepted. This list is to be submitted once at the time of filing his first S. The consideration in any form other than money shall be determined in a manner as prescribed. In such a case the value shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.
Then the value of taxable service shall be Rs. Any person providing taxable service to any person shall pay service tax at the rate specified in Sec.
The due date for payment of service tax is the 5 th of the month immediately following the respective quarter in case of e-payment, by 6 th of the month immediately following the respective quarter.
However, payment for the last quarter i. January to March is required to be made by 31 st of March itself. However, payment for the month of March is required to be made by 31st of March itself. From 1 st April, e-payment of service tax has been made mandatory for the assessees who have paid service tax of Rs.
The e-payment shall be made only in designated banks by 6 th day of the following month. Assessees may contact jurisdictional office for details of the designated banks. The correct accounting heads have been given in the table showing the 'List of Services' in para 1. He can not retain the sum so collected with him by contending that service tax is not payable. Here the word 'import' is used just to indicate service provided by a person who has established his business or has his permanent address outside India and the recipient of such service is such a person who has his permanent address or usual place of business in India.
This provision is not applicable in case of individuals who have received such service other than for the purpose of use in business or commerce. In case where the service provider is a non-resident or is from outside India and does not have office in India , the person receiving the service shall be liable to pay the service tax. However, there is a common condition which is required to be fulfilled by all the taxable services irrespective of the group they belong to to qualify as exported services.
It is necessary that the common qualifying conditions as well as the group-specific conditions are fulfilled so as to treat the provision of any such service as export of service. For the purpose of filing returns half year is counted from April to September and October to March.
In case the assessee has opted for provisional payment of service tax, he is required to file the service tax return in form S. Currently, there are STRPs functioning at various locations spread out all across the country.
The service tax assesses can log on to www trpscheme. Rule 7B of Service Tax Rules, This facility is available for all the categories of service providers. However, in respect of assesses who have paid total service tax of rupees ten lakh or more including the amount paid by utilization of CENVAT credit, in the preceding financial year, electronic filing of return is mandatory.
It is provided under section 75 of the Finance Act, that in case of delayed payments after due date the assessee is required to pay simple interest at the rate prescribed. Notification No. The table below shows the rate of interest applicable at relevant period of time. Export of Services — Service Tax is not applicable on services which are exported.
There are tax rules that define when services are considered as provided in India or outside India. When this is an export of services and certain conditions are met — service tax may not be applicable.
Unsure whether your service considered as an export — reach out to us and we shall help you! Upload your Form Was this article helpful? Have a query? ITR Resources. Mutual Fund Resources. Terms Privacy Legal.
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