- What is Service Tax?
- Service Tax Advantages
- Service Tax Registration Procedure
- Contact us to apply for Service Tax Registration
- Document Required for Service Tax Registration
- How to apply
Apply for Service Tax Registration
What is Service Tax ?
When we use any service we pay some amount more than the fees charged by the service provider.This extra amount paid is called service tax, which is levied on every service provider but is paid by the service user. For eg. When you eat in KFC, when you visit a bar, when you recharge your mobile, or when you hire a cab you pay Service tax levied on these service providers.
Service tax is an indirect tax which simply means it is levied on someone else but is paid by you. This Tax is payable by the Service provider to the Govt. of India.
Service tax was introduced in 1994 by the former Finance Minister Dr. Manmohan Singh.
Until 2012 service tax was levied on specified list of services but now it is payable on every service provided except those services in the negative list.
Composite services : There are services in which it is very difficult to calculate how much the customer has to pay for the service since it involves multiple services. For eg. Eating in KFC involves services of the waiters, cooks, cleaners, etc. In such cases service tax is levied on on the a specied amount of total bill as per the abatement scheme of the govt. – Service Tax in Restaurant is to be levied only on 40% of the Food Bill.
Service Tax Registration
Service tax is charged on CASH BASIS for individual service providers.
Service tax is charged on ACCRUAL BASIS for companies.
Individual/Partnership service providers need to deposit service tax quarterly.
Companies and all other service providers need to deposit service tax monthly.
Every Service Provider is required to apply for Service Tax Registration if the Value of Services provided during a Financial Year is more than Rs. 9 Lakhs, but the Tax would be payable only when the Value of Services provided is more than Rs. 10 Lakhs.
Any delay in Service Tax registration can lead to penalties starting from Rupees Five hundred on delay up to first fifteen days.
All service providers in India, except those in the state of Jammu and Kashmir, are required to pay service tax.
Advantages of Service Tax Registration
- Every business with a turnover less than Rs. 9 lakhs is exempted from Service Tax registration.
- In case of more than one premises for providing services, Centralized Registration can be done.
- Service tax is charged on accrual basis. That is, companies are entitled to Service Tax as soon as services are provided.
- Not applicable for services that are exported from India.
- Provides protection from any tax related legal issues.
- Ease of registering online.
How to register for service tax ?
- Fill the short form.
- You will be contacted soon for confirmation.
- Confirm and submit the required documents online to us.
- You are DONE on your part. You will be intimated about the registration within 1-3 days.
Documents required for registration
A self attested copy of the following are the documents required
- Pan Card copy of the individual/company.
- Photograph and Proof of Identity – PAN Card, Passport, Voter Id Card, Aadhar Card, Driving Licence, or any other photo identity card issued by the Central Govt., State Govt., or Public Sector Undertaking.
- Document to establish possession of the premises to be registered – property papers , Lease/Rent agreement, Allotment letter from the govt., NOC from the Legal Owner.
- Bank a/c details.
- MoA/Aoa/Director’s list.
- Board of Directors/ Partners/ Proprietor’s authorisation to the person filing the application.
- Any of the following – Customs Registration No. (BIN No.), Import Export Code (IEC) No., State Sales Tax No. (VAT) Central Sales Tax No., Company Index No. (CIN) which have been issued prior to the filing of the Service Tax Registration application.
Important Points :
- Quoting PAN No. in the Service Tax Registration Form is mandatory.
- Quoting Email and Mobile No. in the Service Tax Registration Form is mandatory.
How to file these documents required for service tax registration ? The registration procedure is given here.