For every service provided or for every service received, service tax is payable to the central government. Even though with the rolling out of Goods and Services Tax, service tax has been phased out, you must still know a lot about service tax.
What Is Service Tax?
A type of tax payable on services to the central government of India is known as Service Tax. Not all services are covered in this provision, and services that are exempt are defined in the negative list. The tax could be payable by the service provider ( businesses), service receiver(customer), or anyone who is eligible, but the usual way is, it is applicable and has to be paid by the businesses which they recover from their customers.
Why Should You Register And What Is The Procedure?
To smoothen the whole process of identification, tax collection, payment to the government, and return filing, it becomes important to get yourself registered for service tax in case you are eligible. You'll be relieved to know it is no rocket science but very easy and user-friendly, like any other process you must have done once in life.
ACES (Automation of Central Excise and Service Tax), the software opted for by the Central Board of Excise tax and Customs, wherein the entire process of registration, returns, refunds, etc., is carried out, makes everything so much easier.
You must do the following steps after visiting the official ACES website aces.gov.in:
- Start with registering yourself on the portal by making a new online user ID. Select the new user option, provide the required details, submit the form and receive your new credentials for your ID.
- Log in with these credentials and find the online registration form for service tax which is called Form ST1. Again, it would require certain details such as Name, PAN No. etc., so keep it handy and after you complete filling the form, generate an online acknowledgment. You can track the status on the website itself.
- Print this online acknowledgment and, along with signed hard copies of required documents, send it to your nearest Service Tax Office.
- An application has to be made to the concerned Superintendent of Central Excise duty within 30 days of applicability or commencement of business, as applicable.
What Are The Documents Required?
- Form ST 1
- Identity & Address Proof
- Memorandum of Association
- Copy of Pan Card of the service provider
- Power of Attorney
- Bank account details and Bank statements
Certificate of Registration
After application in form ST1, the certificate of registration which is called ST2 shall be issued within a period of 7 days. In case neither the certificate is issued, nor there is an intimation that the application has been rejected, it shall be deemed that the registration has been granted.
After successful registration, the applicant is allotted a 15 character Service Tax number, the first 10 digits of which are your PAN No, the 11th and 12th digits are SD or ST, and in case the application is for one PAN, the next three digits are 001. He is required to quote this number on all the invoices hereon.
Points To Remember:
1. Registration becomes mandatory when the value of services exceeds Rs 9 lakhs below, which shall be exempted for services and those covered under the Negative List. The above criteria are just for registration. Taxes are only payable after the value of services exceeds Rs 10 lakhs.
2. If you provide services of more than 1, you can register all of them in one ST1 form itself.
3. In case multiple services are provided from different premises, separate registration would be required for each place of business. Still, in case there is a Centralized Billing System for all these premises, he can opt for Centralized Registration for all the promises.
4. In case of business transfer, a new certificate of registration must be taken. If the assessee no longer provides the taxable service charged under service tax, he must give up his Certificate of Registration on an immediate basis.
5. Input Service Distributor must get registered, but he can avail CENVAT credit.
6. The certificate can also be amended in case of certain situations, such as a change in business premises.
7. If you provide services not mentioned under the negative list above the specified threshold and have still not got yourself registered under the service tax, be rest assured that you will be liable for a penalty of up to Rs 10000.
8. You should get service tax registration even though service tax does not apply to you if you are an exporter of services.
9. The returns have to be filed on a half-yearly basis, irrespective of collection in the form ST 3.
How can Especia help?
If all this explanation still makes you hazy about how to go about it, you can leave all your stress and tensions aside and let experts at Especia do this for you. With people on board who have the best knowledge experience in this field and who understand your business and its needs the best, entrust us and let us get your service tax registered without any hassle.
Service tax is the tax applicable to services provided in India. Even though it is payable usually by the person who receives the service because it is an indirect tax, the service provider collects it from the service receiver and pays it to the government.
Section 65( 105) of The Finance Act, 1994 gives the complete details about the services covered under this law.
The applicable rate currently is 15%
Yes, it is easier than you can imagine, just like making an account on any other website, giving the details, and filing the form.