際際滷

際際滷Share a Scribd company logo

FAQ's Service tax change

S
SellOnFlipkart

Service tax is a tax imposed by the Government of India on services provided in India. The service provider collects the tax and pays it to the government. The service tax was increased from 12.36% to 14% in the Union Budget 2015. This increased 14% service tax rate will be applicable to Flipkart Marketplace fees starting June 1, 2015 for all products. However, for return orders, the marketplace commission rate reversal will be charged at the old service tax rate.

1 of 1
1. What is Service Tax? Service Tax is a tax imposed by Government of India on services provided in India. The service provider collects the tax and pays the same to the government. For example, if you are selling a product at Rs. 1000/- and Flipkart Marketplace fee is Rs. 100/-, the service tax is calculated on the marketplace fee of Rs. 100/-. 2. Is there a change in the service tax? Yes, the service tax has been increased to 14% from the previous 12.36% in the Union Budget 2015. 3. Will the changed service tax be applicable on all products? Yes, the increased service tax of 14% will be applicable on Flipkart Marketplace fee from June 1st, 2015. 4. Say, if a replacement for an order that was placed before the new service tax came into effect, which service tax will be applicable on the order - the old one or the new one? In this case, we will charge the new service tax rate for the replacement order. 5. What will happen to return orders? The marketplace commission rate reversal/charges for all such orders will be applicable as per the old rate.

More Related Content

FAQ's Service tax change

  • 1. 1. What is Service Tax? Service Tax is a tax imposed by Government of India on services provided in India. The service provider collects the tax and pays the same to the government. For example, if you are selling a product at Rs. 1000/- and Flipkart Marketplace fee is Rs. 100/-, the service tax is calculated on the marketplace fee of Rs. 100/-. 2. Is there a change in the service tax? Yes, the service tax has been increased to 14% from the previous 12.36% in the Union Budget 2015. 3. Will the changed service tax be applicable on all products? Yes, the increased service tax of 14% will be applicable on Flipkart Marketplace fee from June 1st, 2015. 4. Say, if a replacement for an order that was placed before the new service tax came into effect, which service tax will be applicable on the order - the old one or the new one? In this case, we will charge the new service tax rate for the replacement order. 5. What will happen to return orders? The marketplace commission rate reversal/charges for all such orders will be applicable as per the old rate.