Tax Savings tips

'Unwind Tilters present Tax savings tips '

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Service Tax was earlier levied on a specified list of services, but in the 2012 budget, its scope was increased. Services provided by air-conditioned restaurants and short term accommodation provided by hotels, inns, etc. were also included in the list of services.The current rate of service tax is 14.5% . The  rate   of service tax is   same i.e. 14% of taxable   service.  However in certain composite matters which are not pure service but includes cost of material, only a certain portion of the invoice value is treated as taxable service ( which is termed as abatement in service tax terminology) and 14% is chargeale on that portion only and thereby effectively reducing the effective rate of service tax on the overall invoice value. Like for food serves in air-conditioned restaurant.

* Save your Tax - 

Service tax is a tax levied by Central Government of India on services provided or to be provided excluding services covered under negative list and considering the Place of Provision of Services Rules, 2012 and collected as per Point of Taxation Rules, 2011 from the person liable to pay service tax. Person liable to pay service tax is governed by Service Tax Rules, 1994 he may be service provider or service receiver or any other person made so liable. It is an indirect tax wherein the service provider collects the tax on services from service receiver and pays the same to government of India. Few services are presently exempt in public interest via Mega Exemption Notification 25/2012-ST as amended up to date and few services are charged service tax at abated rate as per Notification No. 26/2012-ST as amended up to date. Presently from 1 June 2016, service tax rate has been increased to consolidated rate at 15% of value of services provided or to be provided. The service tax rate now is consolidated rate as education cess and secondary higher education cess are subsumed with 2% of "Swachh Bharat Cess(0.50%)" has been notified by the Government

For saving service tax you can make more company under a company
Or provide a exempted service or service in jammu and kashmir.
Otherwise a govt approaching towards GST
You can expect a new tax form and maybe more tax exception.

PM Modi is promoting Digitization and ‘Less Cash’ economy. This is bound to eliminate or reduce black money. PM Modi is on a mission to eliminate black money and also counterfeit notes. As more money will be available in the system and with the elimination of parallel Black Economy, a common Indian is going to enjoy a lot of benefits - directly or indirectly. One of the major benefits expected is reduction of taxes. Prices are expected to go down. In the light of it, it should be a pleasure to pay taxes to the Government of India, why should you try saving taxes? However, there are many ways a tax can be saved and you should consult your Chartered Accountant for a better advice.

Tips for saving Tax - 

#1: Gain from capital losses by balancing it off

#2: Learn More to Save on Educational Expenses

#3: Lighten the weight of medical expenses on illness of dependants

#4: Politicians are not the only ones to gain – Benefit from deduction on political contributions and charitable donations

Simple tricks -

1) Provident Fund or Voluntary Provident Fund or Employees Provident Fund 
 
2) Public Provident Fund
 
3) National Savings Certificate
 
4) Equity- Linked Savings Scheme
 
5) Life Insurance Premiums 
 
6) Home Loan Principal Repayment
 
7) Stamp Duty and Registration charged for home 
 
8) Five- year bank Fixed Deposits

Source - Quara

Unwind Tilters

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