Financial Services

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Financial Services
Financial services are the economic services
provided by the finance industry, which
encompasses a broad range of businesses that
manage money, including credit unions, banks,
credit-card companies, insurance companies
Financial services are the economic services
provided by the finance industry, which
encompasses a broad range of businesses that
manage money, including credit unions, banks,
credit-card companies, insurance companies,
accountancy companies, consumer-finance
companies, stock brokerages, investment funds and
more.
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Service Tax
Service tax is a tax levied by the government on
service providers on certain service
transactions, but is actually borne by the
customers.
Service tax is a tax levied by the central
government and you have to pay this for certain
services. It is the end user who pays this tax.
In June, the government had increased the service
tax rate to 14 (inclusive of all cess) from
12.36 earlier, making services more expensive
for the end user.
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Goods And Services Tax
The GST is a destination based tax, not the
origin one.
In such circumstances, goods and services tax, it
should be clearly identifiable as to where the
goods are going. This shall be difficult in case
of services, because it is not easy to identify
where a service is provided, thus this should be
properly dealt with.
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GST
The GST is a very good type of tax. However, for
the successful implementation of the same, we
must be cautious about a few aspects.
it is really required that all the states
implement the GST together and that too at the
same rates. Otherwise, it will be really
cumbersome for businesses to comply with the
provisions of the law. Further, GST will be very
advantageous if the rates are same, because in
that case taxes will not be a factor in
investment location decisions, and people will be
able to focus on profitability. For smooth
functioning, it is important that the GST clearly
sets out the taxable event.
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Implications of GST
GST will have a far reaching impact on almost all
the aspects of the business operations in the
country, for instance, pricing of products and
services supply chain optimization IT,
accounting and tax compliance systems.
Implications of GST will be a game changing
reform for Indian economy by developing a common
Indian market and reducing the cascading effect
of tax on the cost of goods and services. It will
impact the Tax Structure, Tax Incidence, Tax
Computation, Tax Payment, Compliance, Credit
Utilization and Reporting leading to a complete
overhaul of the current indirect tax system.
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GST Registration
Find out who is required to register for GST and
learn about special types of registration. You
need to GST Registration if you carry out a
taxable activity. As a business owner, it's your
responsibility to register for GST.
If youre registered for GST, your invoice must
be a tax invoice. Tax invoices are different to
regular invoices as they include the GST amount
for each item along with some extra details. Tax
invoices must be formatted correctly for you to
be able to claim you full tax entitlements.
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GST Impact
Indirect taxes in India have driven businesses to
restructure and model their supply chain and
systems owing to multiplicity of taxes and costs
involved. With hopes that the Goods and Services
Tax (GST) will see the light of the day, the way
India does business will change, forever.
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