Service Tax
Service tax is a tax levied on specified services provided by the service provider (including private businesses). Any person or company providing services in India is required to pay Service Tax. Service Tax has been increased in scope since its introduction and now has shifted to negative list regime from the earlier inclusive regime i.e. from 1st July, 2012 all the services are covered under service tax except those covered in the negative list. This tax is normally charged by the service provider from the person to whom service is provided and is then deposited in government’s account.
SERVICE TAX REGISTRATION PROCEDURE
Section 69 of the Finance Act, 1994 read with Rule 4 of the Service Tax Rules, 1994 prescribe the manner and form for registration as an assessee, of any person liable to pay service taxin accordance with the provisions of Section 68 of the Finance Act, 1994. Below set, in brief is the procedure for registration:
- The first step for Service Tax Registration is to create Online User ID at the Online Service Tax Services website at aces.gov. in
- After Online User ID is registered Fill online Service Tax Registration Form ST1 and generate online acknowledgement for the ST1 filed
- Take Printout of Online Acknowledgement generated after filing form ST1 at the Service Tax website
- Send Signed copy of Online Acknowledgement along with signed hard copy of all documents required as provided below to your nearest Service Tax Office.
- An application for registration in Form ST-1 has to be made to the concerned Superintendent of Central Excise within 30 days from the date on which service tax becomes leviable. However, where a person has commenced his business for providing taxable services after the date when Service Tax is levied, the application for registration is to be made within 30 days from the date of commencement of business. Penalty is levied in case the service provider fails to seek registration within the prescribed time limits.
- Registration: The service provider whose gross receipts exceeds Rs. 10,00,000/- (One Million Rupees) needs to be registered with the Service Tax Department. The gross receipt upto the extent of Rs. 1,00,000/- are exempt from Service Tax. However, this exemption is available only once till the gross receipts have not crossed the Rs. 10 lacs limit. Once the gross receipt exceeds Rs. 10 lacs, the services provider needs to collect and pay service tax on each billing.
- Single Premise Registration: In case service provider is providing services from multiple place of business, separate registration is required in respect of each premise from where the services are rendered. The application shall be filed in Form ST-1.
- Centralized Registration: In case where the service provider is providing taxable services from more than one premises and has Centralised billing system, Centralised accounting system, he may at his option opt for the centralized registration for all such premises. other hand if taxable services are provided by the assessee from more than one premise, and he does not have a centralized billing system, he has to make a separate application for registration in respect of each of such premises. The application shall be filed in Form ST-1 with additional documents.
- Input Service Distributor: An office who is receiving only input services and not providing any outprut service can distribute the CENVAT Credit of the service tax paid on input services. An input service distributor must make an application for registration within 30 days from the commencement of business.
- The assessee has to give some information like his name, address and the category of services rendered except in the case of registration of a Stockbroker. The Service Tax (Amendment) Rules, 2001, with effect from 16-7-2001, has inserted a new column No 2A in Form ST-1 for furnishing PAN Number by the Assessee. If PAN has not been allotted or applied for, the same is to be indicated.
- A certificate of registration in Form ST-2 shall be issued within 7 days from the date of receipt of the application in Form ST-1. However if the registration certificate is not granted within the 7-day period, the registration applied for shall be deemed to have been granted. In the latter case where registration is deemed to have granted a slight anomaly may arise owing to the non-allotment of registration number in the light of the fact that Circular No. V/DGST/30-Misc-29/2001/3674 dated September 18, 2003 read with the Service Tax Credit Rules, 2002 require all service providers providing taxable services to quote their registration number on their invoices.
- Every instance of transfer of business of a registered assessee to another would entail the obtaining of a fresh certificate of registration.
- Every registered assessee, who ceases to provide taxable service, for which he is registered, shall surrender his registration certificate immediately.
- The registration certificate issued to an assessee can be amended on various grounds namely change in address of business premises, change in name and style of firm etc.
- There is minimum/threshold limit that is prescribed for registration. if you are engaged in providing a service which fall under the scope of specified taxable services, you are liable for service tax, unless specifically exempted (like aggregate value of services rendered in the entire financial year do not exceed Rs 10 Lakhs).
- Service tax is currently levied on more than 114 notified categories of services.
- Failure of registration may attract a penalty up to Rs.1000/ - under Section 77 of the Finance Act, 1994.
- Service Tax Code (Registration Number) 15-digit number (Based on PAN of the assessee). Ex: STC No+ PAN+ ST+ 001 Ex: ABXFC1234AST001.
- Premise Details: Address of Premises for which Registration is sought / registered. Here, name of the premise, location of the premise, Block, Taluk, Sub-division, town/ city etc has to be mentioned. More than one premise can be registered for an assessee.
REQUIREMENTS FOR SERVICE- TAX REGISTRATION
Service Tax Registration in India requires various documents from various different class of entities depending on the constitution of the entity i.e. if its Proprietorship, Partnership or a company. Provided below is the list of documents required for various kinds of organisations. The requirements for Service- Tax registration is as follows:
- Self certified copy of Permanent Account Number (PAN) issued by income Tax Authorities (both side). Proprietor/ Firm/ Company
- Residential Address Proof of Proprietor/ Partners and Directors/Authorized Signatory -Rent Agreement/ Ownership Proof If Rented Premises than following
- Rent Agreement
- NOC from Landlord
- Proof of Ownership of Property of Landlord