Service tax Online Registration is very popular term for service providers or startups which are providing valuable services to their clients. so Lets talk about Service Tax Online Registration procedure.
Service tax registration is mainly needed to service provider when their turnover exceed 9 lac rupees in a year but in many cases its need initially. so lets understand service tax registration and its terms in FAQ Manner.
What is Service Tax or Registration ?
Service tax is an additional burden upon all of us. Since 2003, it increased gradually. However, we are least bothered about this. Normally, we are concerned about the direct taxes, the income tax and wealth tax. We want to increase tax slab rate. Do you know? Government earning from service tax is increasing very swiftly. In 2002-03, government earned Rs 4,122 Cr from service tax. In 2014-15, it has become 2,16,000 Cr.
No, This heavy tax is not charged on the corporation. It’s not charged only to the wealthy people. It is also not a tax on the luxury lifestyle. Service tax is levied upon everyone.
You pay service tax on every phone call. You pay service tax on your food bill. You pay service tax on your child’s coaching. Almost, every service comes under the service tax net. even its on restaurant bills or other bills also fall in service tax category.
Service Tax Rates W.E.F 2015
Government has fixed service tax rate at 14% now ,Before 2015-16, it wast 12.36%. The 14% service tax rate is almost uniform except for few specified services and composite services.
Who is liable to pay service tax ?
The common consumer is not liable to pay service tax. Rather, the service provider must pay the tax. The service provider should recover the service tax from the consumer.
Except some services of the negative list, all the services come under service tax net. If you are giving any type of service, you must pay this tax. You can go through this checklist to know whether you need to pay the service tax. If you fulfill these conditions, you must pay tax.
1. You get monetary or non-monetary benefit by doing any work.
2. You are not an employee and don’t get the salary.
3. Your business or profession is neither manufacturing nor agriculture.
4. Your services are not in the negative list.
5. Your Service Turnover exceed 9 lac Rupees in a year.
[alert]In the case of Proprietorship Firm Service Tax Registration Certificate need by banks for opening a current bank account so its recommend if you choose proprietorship firm for starting the business then must take service tax registration in the starting .[/alert]Must Read : How to Register Sole Proprietorship Firm in India
Documents Required for the Service Tax Registration
- Copy of PAN Card of the assessee.
- Documents Required for the premises for which registration is sought;
- Proof of Address: Any one of the following: a. In case of self-owned property, any document like Annual Property tax payment return/receipt showing name of applicant, or copy of sale deed etc. may be provided.
- In case of a rented premises, Lease License/rent agreement or rent receipt of Registered Co. Op. Housing Society. Or c. In any other case, NOC (No objection certificate) from either the owner of property or the person in whose name the rent or lease agreement has been made along with evidence of ownership/tenancy as the case may be.
- Memorandum of Association/Partnership deed as per Companies Act,, if applicable.
Service Tax Online Registration Procedure
1. Fill the (Form ST-1) in duplicate. Enclose photocopy of PAN card and proof of address to be registered.
2. Copy of PAN card is necessary as a PAN based code (Service Tax Code) is allotted to every assessee.
3. These forms are required to be submitted to the jurisdictional Central Excise office (in case of six Service Tax Commissionerates, to the jurisdictional Division office. There are separate service tax commissionerates in Mumbai, Chennai, Delhi, Kolkata, Bangalore and Ahmedabad
4. A person liable to pay service tax should file an application for registration within thirty days from the date on which the service tax on particular taxable service comes into effect or within thirty days from the commencement of his activity.
5. Where a person, liable for paying service tax on a taxable service,
(i) Provides such service from more than one premises or offices; or
(ii) Receives such service in more than one premises or offices; or,
(iii) Is having more than one premises or offices, which are engaged in relation to such service in any other manner, making such person liable for paying service tax, and has centralised billing system or centralised accounting system in respect of such service, and such centralised billing or centralised accounting systems are located in one or more premises, he may, at his option, register such premises or offices from where centralised billing or centralised accounting systems are located.
6. The registration under sub-rule (2), shall be granted by the Commissioner of Central Excise in whose jurisdiction the premises or offices, from where centralised billing or accounting is done, are located:
Provided that nothing contained in this sub-rule shall have any effect on the registration granted to the premises or offices having such centralised billing or centralised accounting systems, prior to the 2nd day of November, 2006.
7. A single registration is sufficient even when an assessee is providing more than one taxable services. However, he has to mention all the services being provided by him in the application for registration and the field office shall make suitable entries/endorsements in the registration certificate.
8. Assessee should get the registration certificate (registration number) within 7 days from the date of submission of form S.T.1, under normal circumstances.
9. A fresh registration is required to be obtained in case of transfer of business to another person.
10. Any registered assessee when ceases to provide the taxable service shall surrender the registration certificate immediately.
11. In case a registered assessee starts providing any new service from the same premises, he need not apply for a fresh registration. He can simply fill in the Form S.T.1 for necessary amendments he desires to make in his existing information. The new form may be submitted to the jurisdictional Superintendent for necessary endorsement of the new service category in his Registration certificate.
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