Service Tax, as reflected by its name, is a tax applied to the services by the server provider, which is to be taken by recipients. It is actually an indirect tax collected by service providers from customers. They have to deposit the collected tax to the central government in time. This tax is applied to a number services @15% on the value of the taxable services and it includes Krishi Kalyan cess @ 0.5% and Swachh Bharat Cess @ 0.5%. Any person who provides taxable service in India more than Rs l lakh in his/her previous year needs to get registered for service tax.

Key Benefits Of Service Tax Registration:

  • Avoid Heavy penalties,
  • Payment of less indirect Tax and
  • Transparent tax liability.

FAQ

HOW TO APPLY AN ONLINE APPLICATION OF SERVICE TAX?

Fill the Form ST-1 available on the departmental website. A PAN card is necessary as a PAN based code (Service Tax Code) is allotted to every assesses. Once the Service Tax Application and the attached supporting documents are verified, the Tax Department will allot Service Tax Registration (ST2) for business…

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.

WHAT ARE TAXABLE SERVICES?

Almost all services provided in India are taxable. complete list of taxable services specified in Section 65(105) of the Finance Act, 1994.

HOW MUCH TIME WILL DEPARTMENT TAKES TO ISSUE A SERVICE TAX REGISTRATION CERTIFICATE?

An assesses get the registration certificate (registration number) within 7 days from the date of submission of form S.T.1 along with required documents, under normal circumstances.