What is Service Tax Registration in India ?
Today we talk about the service tax registration. Service tax registration is very useful things for the service providers startups in India. even in many cases service tax registration is required mandatory. As a Sole Proprietorship Firm if you want to register your business as service provider then best thing is taken the service tax registration so today we talked about the service tax registration.
In Simple words service tax is like a indirect tax which is pay by the service providers and recover from the service receiver. service tax is collected by the government of india from certain service providers regarding the certain services. as a consumer its a like a tax which is pay by us for enjoy or receiving the services.
Applicability of the Service Tax Registration
Service tax is applicable on all the services providers. Service tax is payable by the individual service providers with the companies. Its introduce in 1994 Finance Act and all the taxable services are covered under the section 65 of the act. Its applicable in all India except Jammu and Kashmir.
Service tax mandatory for the service provider if their services turnover is crossed 10 lac rupees in a year but as a registration of the sole proprietorship firm banks always ask for the legal proof so firm can introduce service tax registration certificate as sole proprietorship firm.
From 2012 all the services are taxable except which are introduce in negative list in the act.
Service Tax Rates in India
Previously service tax rate is 12% in india but now its 14% in India from budget 2015. its a revised rate with the education cess and higher secondary cess. Recently Government of India also introduce Swachh Bharat Cess which are 2% on all or select taxable services in India.
How to Register Service Tax Registration in India
Service tax registration is completely online. A Individual can register through aces official government of India website.
Procedure for the Service Tax Registration Certificate :-
- Apply for the ST-1 Form Online.
- Upload and submit the documents
- Government Department verify the documents and issued ST-2 Form.
ST-2 Form is called also service tax registration certificate.
What Documents Required For the Service Tax Registration
- Copy of the PAN card
- Address proof like copy of passport, bank statement, voter ID, Aadhar card, Driving license, rent agreement, electricity bill
- MOA, AOA, authorization to the director for filing application and list of directors in case of companies
- Other government registrations if any like Certificate of incorporation, Import export code, and State sales tax registration.
TimeLine for the Service Tax Registration
Service tax registration require minimum 5 to 7 working days and you got the final registration certificate which is called ST-2 Form. its has mentioned service tax registration number on the certificate.
Service Tax Registration Certificate Sample
Source of the Certificate :- Link
Costing and Fees for the Service Tax Registration
In the Service tax Registration there is no costing in the government charges. Professionals like Chartered Accountants, Company Secretary or lawyers charge a range between 2500/- to 5000/- Rupees for the service tax registration. Service tax registration can be done online also via many website such as like myonlineca which are doing service tax registration at very affordable pricing.
Example of Internet Startup Business which are require service tax registration
- ECommerce Marketplace Such as Flipkart/Snapdeal/Amazon are the marketplace model which attract the service tax which is recover from the sellers.
- Website Hosting Service Providers
- Internet Tech Startup any App or Website as Information provider.
- Website or App development services.
- Classifieds website for the Premium Ads
- Listing website just like Justdial, Indiamart, Sulekha.
- Food Tech Startups like Foodpanda or Zomato.
- Legal Tech Startups like MyOnlineCA and Cleartax.
- Marketplace based all models.
- Freelancer Developers.