Service Tax Registration
Service Tax Registration INR - 1,500.00
Service Tax Registration is necessary registration required for businesses providing services in India except the territory of Jammu&Kashmir. Service tax is a form of indirect tax wherein the service provider pays the tax on behalf of the Service receiver and recovers the same from the receiver of the taxable service. Service Tax is a Tax levied by Central Government of India on services provided or agreed to be provided except the services covered under negative list. At present, In India Service Tax is charged at a flat rate of 14% on the value of taxable service. Rate of service tax has been increased from 12.36% to flat rate of 14% w.e.f. from1st June 2015. Swachh Bharat cess is yet to be notified by the government. Service Tax play a major role in the Indian Economy. At first Service Tax was levied at a flat rate of 5%.
Service Tax registration is mandatory for every person or business in India who has provided a taxable services of value exceeding Rs.9 lakhs, in the previous financial year. This Registration is required in identification of the assesse, deposit of service tax, filing of service tax returns and undertake the various processes required under the Finance Act, 1994. In case of Failure to obtain the service tax registration certificate would attract penalty as per section 77 of the Finance Act, 1994. Service Provider is only liable to pay the Service Tax in case where the value of service provided is more than Rs. 10 Lakhs in a financial year. E-payment of Service Tax has become Mandatory for all the Assesse. Rule 4A of Service Tax provided that credit shall be only given on the basis of bill, invoice or challan. Service Tax rule is not applicable in the territory of Jammu&Kashmir. For practical approach, Service Tax is actually borne by the customers. Service Tax on individual service is charged on cash basis, and to companies on the accrual basis. Various Amendment is made by time to time by CBEC. EASIEST scheme has been launched by the Department for convenient payment of Service Tax. E-payment of Service Tax has become mandatory for all the assesse.
Service tax is a tax on services provided or agreed to be provided in India excluding the services which is covered under Negative List. Service tax is levied under the Finance Act, 1994 on certain services as specified by the Government of india. Serrvice Tax was recommended by the Tax Reform committee of Dr. Raja Chelliah. Service tax is not charged in the territory of Jammu&Kashmir.
Service tax is paid by the person who recieve services. Service tax is a form of indirect taxation. Therefore, Service provider who provides the taxable service on receipt of service charges along with the service tax has the liability for payment of Service Tax to the Government. The exemption is also allowed to the Small Scale Service Providers who provided taxable services of less than Rs.10 lakhs in a year.
Almost All Services provided in India are taxable except the Services which are provided in the territory of Jammu&Kashmir. But government had added the Negative List of Service Tax. There are some Services mentioned in Negative list on which Service Tax is not charged.
Presently the effective rate of Service Tax is 14% on the taxable value of service. Service Tax was charged at 12.36% in past. Therefore the Service Tax is normally charged@ 14% on the taxable value of Service. Rate of 14% is applicable from 1st june 2015.
The service providers who have provided taxable services of value exceeding Rs.9 lakhs in the previous financial year has the mandatorily liablity for registration of Service tax. This registration is very helpful in the identification of Assesse, payment of service tax and filing of service tax returns. Penalty is levied in case of Failing to obtain registration certificate of Service Tax.
Person who has provided taxable services of value exceeding Rs.9 lakhs in the preceding financial year is necessarily required to obtain the registration certificate of Service Tax. When a person commences a new business, Proprietor of the new businees is required to obtain service tax registration within 30 days of commencement of new business, when the taxable value of the new business exceeds the limit of Rs.9Lakhs.
For obtaining the service tax registration following documents are required; A copy of PAN Card, Proof of address of business and constitution of the business [Partnership deed, Incorporation Certificate, etc.,].
The Government must issue the Service tax registration certificate within a period of seven days from the date of submission of application of ST-1 along with all the relevant documents. If the registration certificate is not issued within seven days, then Service provider assume that registration applied for is deemed to have been granted.
When a Service provider is failed in obtaining of Service Tax registration certificate. The Service Provider is liable for penalty of upto Rs.10,000/- or Rs.200/- for every day during which the failure continues, whichever is higher.
The Payment Service tax can be made at any specified branches of designated banks. We can easily get the list of designated banks from the Central Exicise or Sales Tax office. Form G.A.R.7 challan is used for the payment of Sales tax. Now E-payment of Service tax has also become mandatory for all the asseesse.