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Service Tax is a tax that is levied by Central Government of India on a service provider who extends his services in any form of business such as software development, restaurant food service, consulting, car repair etc. and which attracts additional taxable amount is called Service Tax. Or in other words, service tax is levied on certain services rendered by service provider, service receiver or anyone who is liable as per the Central Government of India. The Service Tax levied is 14% as of June 2015. The Goods and Services Tax (GST) introduced by the government of India in July 2017 has replaced Service Tax.
Registration of Service Tax can be done online without any hassles. A new software named ACES (Automation of Central excise and service tax) was bought by the central board of excise tax and customs to make taxpayers service’s better. ACES comprises of the entire tax process including registration, returns, accounts, refunds etc. Besides, registration of service tax can be done online through ACES.
The following steps will help you register for service tax online:
Visit the official website of ACES
Select option as Service Tax
Once you select new user option, you will be redirected to the registration page
Details like the name of the unit, designation, phone number should be provided by the assesse to get him/her registered.
Once all the details are entered, you can submit the form.
On submitting the form, you will receive the username and password on the email within 24 hours.
You can find the Service Tax registration form online on ACES website and the form is called as Form ST 1. This form can be downloaded once your register with ACES. Following are some of the details that have to be filled in order to apply for Service Tax.
PAN (Permanent Account Number)
Contact details of the proprietor
Constitution of applicant
Category of registrant
Service Tax Registration Status
The following documents will be required for service tax registration:
Power of Attorney
Form ST 1
Memorandum of Association
Copy of PAN card of the assesse
Who requires to be registered?
Who Has to Pay Service Tax?
Any services extended by a service provider in any form of business such as consulting, software development, car repair, etc. which attracts an additional taxable amount called service tax.
What Are Taxable Services?
Following is the list of taxable services in India. Although the list of taxable services is huge, few of them are listed below:
1 Advertising Agency Service 2 Advertisement- sale of space or time services 3 Air travel agent’s services
What is The Rate of Service Tax in India?
Service tax rate in India is 14%.
How Long Does it Take to Obtain Service Tax Registration?
In an ideal situation, the service tax registration is issued by the Government within a period of 7 days.
Does The Government Charge a Penalty for Not Obtaining Service Tax Registration?
Yes, there is a penalty charged for not obtaining service tax registration under section 77 of the Finance Act, 1994 but such penalty cannot at any time exceed INR 1000. This is a stand-alone provision.