a ) What is Service Tax Registration?
Service tax is a tax on services provided in India. Service tax is levied under the Finance Act, 1994 on certain services as specified by the Government.
b ) Who has to Pay Service Tax ?
Service tax is to be paid by the receiver of the service. However, service tax is a form of indirect taxation. Therefore, the person who provides the taxable service on receipt of service charges along with the service tax is responsible for paying the service tax portion to the Government. Also, small scale service providers who provide less than Rs.10 lakhs of taxable service a year is exempt from service tax.
c ) What are taxable services ?
Almost all services provided in India are taxable. To find the complete list of taxable services, refer to Section 65(105) of the Finance Act, 1994. All taxable services as on 1.5.2011 is listed in Appendix-1.
d ) What is the rate of Service Tax ?
Service Tax Rate Now 14% (Updated). Previous Rate is 12.36%, Check amendment here
e ) What is Service Tax Registration Certificate ?
Service tax registration Certificate is a mandatory registration for service providers who have taxable service of value exceeding Rs.9 lakhs, in the previous financial year. Service tax registration facilitates in the identification of assesse, payment of service tax and filing of service tax returns.
f ) 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.
Note : As a Firm Registration Service tax registration is mandatory in the starting. reason is mostly banks does not open a current account without service tax registration in the case of service based business.
Check Here Compliance
g ) What Documents Required for Obtain Service Tax Registration Certificate ?
To obtain service tax registration, a copy of PAN Card, proof of address of business and one business place address proof or constitution of the business [Partnership deed, Incorporation Certificate, etc.,] is required.
h ) How much time taken for obtaining service tax registration certificate ?
Service tax registration certificate must be issued by the Government within a period of seven days from the date of submission of application ST-1 along with all the relevant documents. In case the registration certificate is not issued within seven days, the registration applied for is deemed to have been granted.
i) What is penalty for not obtain service tax registration certificate and doing the business?
Failure of registration may attract a penalty of upto Rs.10,000, 5000 or Rs.200 for every day during which the failure continues, whichever is higher.
j ) How to Pay Service Tax ?
Service tax payments can be made at specified branches of designated banks. The list of designated banks can be obtained from the Central Exicise or Sales Tax office. Sales tax payments should be made using Form G.A.R.7.
Mainly you can help from Chartered Accountants or legal professional to take care of service tax returns.
k) What should service tax payments should be deposited ?
Service tax payments must be deposited by Proprietary Firms and Partnership Firms quarterly. Companies, Societies, Trust, etc., are required to make service tax payments monthly.
l ) When should service tax return due dates comes ?
Service Tax Return ST-3 must be filed twice in a financial year. Return for half year ending 30th September and 31st March are required to be filed by 25th October and 25th April, respectively.
m ) How Legal Chalo helps me to taking Service Tax Registration ?
Legal Chalo sends you several proposal on the service tax registration from all over india with pricing and reviews , then select best provider and we will connect with them and get done your service tax registration.
