S ERVICE T AX

W HAT IS S ERVICE T AX ? Indirect tax on services Like VAT on goods Deposited by service provider Recovered from client 2

A PPLICABILITY 3 Service ?Any Act done for fees, etc. Coverage ? All services, except negative list Codes for 119 services All others under residual ExemptionFor some NGOs Charge onFees and Expenses Tax Rate12.36%

R EGISTRATION Fill form ST-1 in duplicate and enclose PAN Proof of address Submit Central & Excise office Jurisdictional Division Office in metros Application within 30 days 4 H ELPAGE PARTNER WS, J AN -F EB 13

W HAT IS FEE ? 5 Fees Act by a charity for consideration If If providing something in return… Display donors name Give business advantage to donor

N OT F EE … Payments Donations Gifts Grants without obligation e.g. specific research Unconditional Stipulating proper usage of funds Furnishing of account 6

NGO E XEMPTION Exempt (para 6.3 of circular) If Exempt u/s 12A Activities Public Health Religion Education Environment / culture Others Turnover upto 25 lakh p.a. 7

P UBLIC H EALTH Care or counselling of terminally ill persons or persons with severe physical or mental disability, persons afflicted with HIV or AIDS, or persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or Public awareness of preventive health, family planning or prevention of HIV infection; 8 H ELPAGE PARTNER WS, J AN -F EB 13

R ELIGIOUS Advancement of religion 9 H ELPAGE PARTNER WS, J AN -F EB 13

E DUCATION Advancement of educational programmes or skill development relating to,- abandoned, orphaned or homeless children; physically or mentally abused and traumatized persons; prisoners; persons over the age of 65 years residing in a rural area; 10 H ELPAGE PARTNER WS, J AN -F EB 13

E NVIRONMENT ETC. Preservation of environment including watershed, forests and wildlife; 11 H ELPAGE PARTNER WS, J AN -F EB 13