SERVICE TAX REGISTRATION

Service Tax Registration

Service tax is a tax imposed by government of India on services provided in India. Service Tax Registration is a tax registration required for person providing services in India. Service tax registration is an indirect tax wherein the service provider pays the tax and recovers the same from the recipient of the taxable service. At present, Service Tax is levied at 14% on the value of the taxable service. This includes swatch Bharat cess of 0.50 (half) percent on service tax.The service tax rules mandates online application for registration.Service Tax registration is compulsory for every person who has provided a taxable service of value exceeding Rs.9 lakhs, in the preceding financial year.

Highlights

Service Tax Registration

Basic exemptions is given by tax authorities. However Service tax registration must be obtained by any person who provided a taxable service of value exceeding Rs.9 lakhs, in the previous financial year. Failure to obtain service tax registration can consequence in penalty.

Payments

Service Tax Payments must be deposited to government treasury by quarterly / six monthly depending upon nature of person registered.For delayed payment of service tax interest will be applicable. 

No Service tax on Export

For services which are classifying as export of service from India the service provider is not required to pay service tax. Moreover under Rule 5 of CCR person exporting services become eligible for refund of service tax.

Reverse Charge

In year 2012 Finance Minster introduced A new scheme of taxation whereby the liability of payment of service tax shall be both on the service provider and the service recipient. Usually such liability is affixed either on the service provider or the service recipient.

Service Tax Returns

Service Tax Return Form ST-3 must be filed half yearly. Return for half year ending 30th September and 31st March are required to be filed by 25th October and 25th April, respectively.


Basic Exemption

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.


FAQs

What is Service Tax?

Service tax is a tax on services provided in India. Service tax is levied under the Finance Act, 1994 on certain services as specified by the Government.

Who has to pay Service Tax to government?

Service tax is a form of indirect taxation. Service tax is to be paid by the receiver of the service. Therefore, the person who provides the taxable service charges along with the service tax on services amount. He is liable for paying the service tax portion to the Government. Also, small scale service providers who provide less than Rs.10 lakhs of taxable service a year is exempt from service tax.

Can recipient of service be also asked to pay service tax?

In certain cases revers charge Government may shift the liability of payment of service tax to the receiver of service as a measure of administrative convenience. It is often mentioned to as ‘reverse charge’ in tax language.

What are taxable services?

Almost all services provided in India are taxable. To find the complete list of taxable services, refer to Section 65(105) of the Finance Act, 1994. All taxable services as on 1.5.2011 is listed in Appendix-1.

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?

What is service tax registration?

Service tax registration is PAN based registration for service providers who have taxable service of value exceeding Rs.9 lakhs, in the previous financial year. Service tax registration is required for payment of taxed and filling of return.

How long does it take to obtain service tax registration?

In seven days Service tax registration certificate is issued by the Government however in case officer fail to issue certificate in seven days then the registration applied for is deemed to have been granted.

When should Service Tax Returns be filed?

Service Tax Return ST-3 must be filed twice in a financial year. Return for half year ending 30th September and 31st March are required to be filed by 25th October and 25th April, respectively.

What is the rate of Service Tax?

The current effective rate of Service Tax is 14.% on the value of the taxable service in addition to 0.50% swatch Bharat cess is applicable the effective rate becomes 14.5%.

When is Service Tax required to be paid? For individual or a proprietary or partnership firm or Company?

Individual , Partnership Firm to pay Quarterlyby the 5th day of the month following each quarter and by the 6th day of the month following each quarter if the duty is deposited electronically through internet banking. For example, Service Tax for the quarter ending 30th of June is to be paid by 5th or 6th of July as the case may be.

For all other categories (Company, Society, Trust etc.).—Monthly - by the 5th day of the succeeding month and by the 6th day of the succeeding month if the duty is deposited electronically through internet banking;Exception: For the month of March or quarter ending March, all assessee have to pay by 31st of March

Process Flow

Service Tax registration

Our Team can help you to obtain your service tax registration with in 5-7 working days subject to government approval




1 Day


We Prepare Application

Our expert team will prepare service tax application ST 1 on your hehalf and file with government authorities.




1 Day


Submit Necessary documents to department

After preparation of application our team will submit application to government department.




1 Day


Get registration completed

After verification of documents by department they will issue Service tax registration number




1 Day






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