Service tax is a tax levied by Government of India on services provided or to be provided excluding services covered under negative list and mega exemptions as defined in service tax law. Every person providing taxable services exceeding Rs. 0.90 million in a financial year, is required to get registered under service tax. Further service provider need to charge service tax on all taxable services above Rs. 1 million and deposit the tax with Central government. Upon registration, assesse gets a unique service tax code, which is required for deposit of service tax, return filings and other tax compliances. At present, the consolidated rate of service tax is 15% on the value of services.
Every person providing taxable services exceeding Rs. 0.90 million in a financial year, is required to get registered under service tax within 30 days. Voluntary registration is also permissible.
Where registration has not been granted within 7 days from the date of receipt of application form, the registration shall be deemed to have been granted.
Any person providing taxable services above Rs. 1 million in a financial year is required to charge service tax from service receiver at prescribed rate (At present 15%) on the value of services.
Service tax amount charged from service receiver need to be deposited to central government by prescribed date of subsequent month/quarter (At present 5th or 6th of subsequent month/quarter) through online or by GAR-7 challan.
Form ST-3 is required to be filed twice in a year electronically. Due date of return for half year ending 30th September and 31st March is 25th October and 25th April, respectively.
Normally, the liability to pay service tax lies with the service provider except the situations covered under reverse charge mechanism, where service receiver pay the amount of service tax.
The applicant is required to register with ACES (Automation of Central Excise and Service Tax) and fill up online application form (Form ST-1), by providing requisite information including applicant basic details, type of services, registered address etc.
Copy of Form ST-1, acknowledgement slip for online application and supporting documents are submitted with concerned service tax department within 7 days from the date of online registration.
After due verification, the service tax department issues Registration Certificate (Form ST- 2), which is sent by email and may also be downloaded from ACES.
Taxable Services have been specified under Section 65(105) of the Finance Act, 1994. All services are taxable except the services covered under negative list and Mega Exemptions.
Yes, If assesse is providing taxable services from more than one premises, he may obtain a Centralised registration in respect of all services provided by him for all its branches/divisions/ offices/premises.
The Service Tax Registration certificate (ST-2) should be surrendered immediately to the Superintendent of Central Excise.
In case of non-payment or delayed payment, assesse is liable to pay such tax along with prescribed interest and penalty.
It is an indirect tax levied on all services except the services covered under negative list and Mega Exemptions. At present, the consolidated rate of service tax is @15%.
Normally, the person providing the taxable services is responsible for paying the service tax to the government but under Reverse Charge Mechanism the service receiver is liable to pay service tax.
Yes, having PAN is essential as the Service Tax Code is generated based on the PAN issued by the Income Tax Department.
In the event of transfer of the business, the transferee should obtain a fresh certificate of Service Tax registration.
If a person fails to file the ST-3 returns by the due date, he shall be liable to pay late fees depending upon the period of delay.