Service Tax Registration

Service Tax Registration

    About Service
Service tax is an indirect tax levied on a wide array of services specified by the Central Government under the Finance Act, 1994. The service provider (a restaurant or tour operator, for example) pays the tax and recovers the amount from its customers. The service provider must be registered with the Central Government if the preceding fiscal year's turnover is over Rs. 9 lakh. However, collection must start, at the rate of 15%, only when the turnover of the business exceeds Rs. 10 lakh. Once service tax is collected, if even for only a month, the service provider must continue to collect service tax, regardless of whether revenues fall below Rs. 10 lakh per annum. Service Tax is to be paid to the central government via designated branches or online once every quarter by LLPs, partnerships and sole proprietors and once every month by all other entities.
 Timeline: 5-7 Working days
 Package Inclusions
  • Service Tax-1 Form
  • Service Tax-2 Registration Issuance
  • Acknowledgement of Application filed
  • Registration Certificate
 Documents Required
  • PAN Card- All Directors/Partners/Proprietor
  • ID Proof(Voter Card/Passport/Driver's License)- All Directors/Partners/Proprietor
  • Passport size photograph (Min. 4)
  • Address Proof of proposed Registered Office of company
    a) If taken on rent then NOC with utility bill from the owner
    b) If not taken on rent or owned by any other entity then NOC signed by owner
    c) If owned by Director then sale deed with electricity bill
  • For The Entity:
  • PAN Card of the Company/Partnership
  • Incorporation Certificate/Partnership Agreement
  • Board Resolution
  • MOA
  • AOA
  • Form 32
  • Form 18
 Process Details
  • Document Collection
  • Filing of Application
  • Physical Inspection
  • Service Tax Number and Certificate Issued
  • Courier of Hard Copy of Certificate
 Key Advantages
  • Required for businesses providing services in India
  • Prevention from incurring heavy fines and penalties
  • Mandatory for every person or business in India that has provided a taxable service of value exceeding INR 9 lakhs in a financial year
  1. What is Service Tax?
    It is an indirect tax levied on the transaction of certain specified services by the Central Government under the Finance Act, 1994.The person who pays service tax can be either a service provider or a service receiver or any other person who is responsible for providing certain services.
  2. Can recipient of service be also asked to pay service tax?
    Generally, the person who is providing taxable service is liable to collect and pay service tax from the service recipient. However, in few cases, exceptions have been made and the service recipient is made liable to pay service tax. Such payments are called as ‘service tax on reverse charge mechanism’. In case of reverse charge, the recipient has to pay tax only after payment is made to the service provider. However, if the payment is not made within a period of 3 months of the date of the invoice, the due date for payment of service tax on reverse charge basis shall be the date immediately following the expiry of 3 months (from the date of the invoice received from the service provider).
  3. What are the exemptions for service tax?
    Small scale service providers who provide taxable services of less than Rs.10 lakhs in a year is wholly exempted from service tax and service tax registration. For services exported from India, service tax is not applicable. Therefore, exporters of service are not required to pay service tax. However, it is advisable for service exporters to obtain service tax registration.
  4. Is PAN allotted by the Income Tax Department a must for obtaining Service Tax Registration?
    Having PAN is essential because the Service Tax Registration number is generated based on the PAN issued by the Income Tax Department. However, in the absence of PAN, a temporary Service Tax registration number would be issued for assesse who is not having PAN at the time of filing the application (ST-1) for Service Tax registration till such time they obtain PAN. Once the PAN is obtained, the Service Tax assesse should obtain the PAN based Service Tax Registration number.
  5. What is the basis for paying service tax?
    E-payment of Service Tax through internet banking is mandatory with effect from 1st October 2014. Service Tax Payments must be deposited in designated banks quarterly in case of Proprietary Firms or Partnership Firms and monthly in the case of Companies, Trusts, Societies, etc.
  6. What amount should be paid as service tax?
    One can pay any amount of service tax (more than the actual dues) as advance towards future tax liability. Such excess amount can be adjusted against the future tax liability. There is no limit on amount that can be adjusted or time limit for adjustment.

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