what is the procedure to register for Service Tax and required documents

what is the procedure to register for Service Tax and required documents

Service Tax

Service tax is a tax collected by government which is payable on services provided by the service provider. Just like excise duty is payable on goods manufactured, service tax is payable on services provided. Service tax is levied by the government on service providers on certain service transactions, but it is actually borne by the consumer of service. Service tax is levied on all services except negative list of services. Some services are specifically exempt by the government by notification in official gazette. Similarly there are some services which are known as composite services where abatement scheme is announced by the government under which service tax is only levied on a specified portion of total value of services.

Documents to be submitted for Service Tax registration

A self attested copy of following documents is required to submitted through registered or speed post to concerned division within 7days of filling ST-1 for verification by the concerned officer

Copy of PAN card of Owner of the business entity

Photograph and ID proofs of the person filing application like aadhar card, voter ID card, driving license etc.,

Proof of ownership, lease or rent agreement and No objection letter from legal owner

List of all directors of company

Companies MOA, AOA

Bank Account of Owner

Authorization required from all the Directors/Partners/Proprietors

Other documents such as Import export code, Central sales tax number, state sales tax number, VAT, Company Index Number.

Payment of Service Tax

Every service provider whose total value of services in a financial year exceeds 10 lakhs is liable to pay service tax. Service tax has to be paid through GAR-7 challan which is available in specified branches of particular bank. However, service tax can also be paid online by using the e-payment facility offered by Central Board of Excise and Customs. Service tax to be paid within due dates as specified below

Individuals/Partnership firm – 5th (Physically) or 6th (Electronically) of following quarter

Others – 5th (Physically) or 6th (Electronically) of following month.

Penalty for late payment of Service Tax

If service tax is not paid within the date specified then assessee shall be liable to pay simple interest at the rate as specified below

Up to 6 month - 18%

6 months to 1 year - 24%

More than 1 year - 30%

If total taxable services provided in a financial year does not exceed 60 lakhs, then the penal interest rate is reduced by 3%

Who has to take registration under service tax law

Every assessee whose total value of taxable services in a financial year exceeds 9 lakhs shall get registered under service tax law. However, if value of services rendered in a financial year is less than 9 lakh then service tax registration is optional at the option of service tax provider. Service tax registration is mandatory for following categories of persons

Input Service Distributor

Every person liable to pay service tax under Reverse Charge

Aggregate value of taxable services provided exceed 9 lakh in a Financial year

Procedure for service tax registration

Application for Service tax registration shall be file in form ST-1

First time users have to create log in ID before filling form ST-1

Superintendent after verification of ST-1 form will grant service tax registration certificate in ST-2 to the assessee

If application is not issued or rejected within 2 days by the superintendent then service tax registration shall be deemed to be granted