service tax registration

Today many entrepreneurs running service based business like marketplace of  e-commerce business or apps based or classified websites or many more but don’t know about the service tax registration which is applicable on their business so we guide you “How To Apply for the Service Tax Registration in India

Service Tax Registration is a Central Tax Registration which is applicable on service based business. so we guide you “How you Can Apply for the Service Tax Registration in India with Required Documents and other legal charges information.

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. To pay this tax, 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% (Updated), only when the turnover of the business exceeds Rs. 10 lakh. Once this you cross this mark, you must always collect the tax even if your turnover is less than this in subsequent years.

FAQ regarding service tax Registration

a) What is Service Tax Registration ?

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.

b) Who has to Pay Service Tax ?

Service tax is to be paid by the receiver of the service. However, service tax is a form of indirect taxation. Therefore, the person who provides the taxable service on receipt of service charges along with the service tax is responsible 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.

c) 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.

d) What is the rate of Service Tax ?

Service Tax Rate Now 15% (Updated). Previous Rate is 12.36% or 14%, Check amendment here

e) What is Service Tax Registration Certificate ?

Service tax registration Certificate is a mandatory registration for service providers who have taxable service of value exceeding Rs.9 lakhs, in the previous financial year. Service tax registration facilitates in the identification of assessee, payment of service tax and filing of service tax returns.

f) Who must obtain service tax registration ?

Any person who has provided taxable service of value exceeding Rs.9 lakhs in the preceding financial year is required to obtain service tax registration. When a person commences a new business, he/she is required to obtain service tax registration within 30 days of commencement, if the business will have taxable service in excess of Rs.9 lakhs.

Note : As a Firm Registration Service tax registration is mandatory in the starting. reason is mostly banks does not open a current account without service tax registration in the case of service based business.

g) What Documents Required for Obtain Service Tax Registration Certificate ?

To obtain service tax registration, a copy of PAN Card, proof of address of business and one business place address proof or constitution of the business [Partnership deed, Incorporation Certificate, etc.,] is required.

Update : Now Service Tax Converted into the GST Registration, so if you are looking for the  New GST  Registration at the Cheapest Cost with the paper less online then just fillup below form and get Started your GST Registration –

 

h) How much time taken for obtaining service tax registration certificate ?

Service tax registration certificate must be issued by the Government within a period of seven days from the date of submission of application ST-1 along with all the relevant documents. In case the registration certificate is not issued within seven days, the registration applied for is deemed to have been granted.

i) What is penalty for not obtain service tax registration certificate and doing the business?

Failure of registration may attract a penalty of upto Rs.10,000/-, 5000/- or Rs.200/- for every day during which the failure continues, whichever is higher.

j) How to Pay Service Tax ?

Service tax payments can be made at specified branches of designated banks. The list of designated banks can be obtained from the Central Exicise or Sales Tax office. Sales tax payments should be made using Form G.A.R.7.

k) What should service tax payments should be deposited ?

Service tax payments must be deposited by Proprietary Firms and Partnership Firms quarterly. Companies, Societies, Trust, etc., are required to make service tax payments monthly.

l) When should service tax return due dates comes ?

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.