Service TAX Registration

Get Started – From Rs. 3,500/-

Service tax is, as the name suggests, a tax on Services. It is a tax levied on the transaction of certain services specified by the Central Government under the Finance Act, 1994. Service Tax Registration is a tax registration required for businesses providing services in India. Service tax registration is an indirect tax wherein the service provider pays the tax and recovers the same from the recipient of the taxable service. At present, Service Tax is levied at 14.5% on the value of the taxable service. This includes Service Tax @ 14% and Swachh Bharat Cess @ 0.5% on the taxable service value. However, from 1st June 2016, KrishiKalyan Cess @ 0.5% will be charged on all taxable services, which will be in addition to the existing service tax rates. This means that the effective Service Tax rate from 1^st June 2016 would be 15%.

Service Tax is a destination based consumption tax, i.e. place of the service provider is irrelevant, it is important to check only the place where the service is consumed to decide taxability. Service Tax extends to whole of India except the state of Jammu and Kashmir. The person who provides the taxable service is responsible for paying the Service Tax to the Government. However, in the following situations, the receiver of the Services is responsible for the payment of Service tax:

1. Where taxable services are provided by Foreign Service providers with no establishment in India, the recipient of such services in India is liable to pay Service Tax,
2. For the services in relation to Insurance Auxiliary Service by an Insurance Agent, the Service Tax is to be paid by the Insurance Company
3. For the taxable services provided by a Goods Transport Agency for transport of goods by Road, the person who pays or is liable to pay freight is liable to pay Service Tax, if the consignor or consignee falls under any of the seven categories i.e. (a) a factory (b) a company (c) a corporation (d) a society (e) a co-operative society (f) a registered dealer of excisable goods (g) a body corporate or a partnership firm.
4. For the taxable services provided by Mutual Fund Distributors in relation to distribution of Mutual Fund the Service Tax is to be paid by the Mutual Fund or the Asset Management Company receiving such service.

Every person who has provided a taxable service of value exceeding Rs. 9 lakhs, in the preceding financial year, is required to register with the Central Excise or Service Tax office having jurisdiction over the premises or office of such service provider. When the turnover reaches Rs. 10 lakhs per annum it becomes compulsory to collect service tax from your clients or customers whenever any service rendered. Small scale service providers who provide less than Rs.10 lakhs of taxable service a year is exempt from service tax. 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.

Registration is identification of an assessee. Identification is necessary to deposit service tax, file returns and undertake various processes ordained by law relating to service tax. Failure to obtain registration would attract penalty of upto Rs.10,000/- or Rs.200/- for every day during which the failure continues, whichever is higher. The Registration certificate should be issued within a period of seven days from the date of submission of application ST-1 along with all relevant details/documents. In case the registration certificate is not issued within seven days, the registration applied for is deemed to have been granted.

Process Time:

AuditNeeds can obtain Service Tax registration in 4 to 6 working days, subject to Government processing time timely submission of relevant documents by the Client.

Documents Required for Service TAX Registration: (Self attested)

• Copy of PAN card of the proprietor / partners / directors.
• Copy of Voter’s ID/ Passport / Driver’s License / Aadhar Card of the proprietor / partners / directors. (any 2)
• Rental Agreement / Sale deed of commercial space.
• Copy of latest electricity bill and tax receipt in the name of landlord of office address.
• NoC from Landlord.
• Copy of PAN card of the Partnership Firm / Company.
• Certificate of Incorporation of the Company/ Partnership Deed of the Partnership firm.
• Memorandum and Articles of Associates of the Company.
• Details of Main Bank Account.
• Authorization letter/ resolution by the Board of Directors/ Partners.
• Copy of Sales Tax/ VAT Certificate, CST Certificate, Import Export Code Certificate, Customs Registration, etc

Know the Government Registration