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Service Tax: All You Need to Know About

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.

Service Tax Registration Online

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.

Service Tax Registration Procedure

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.

Service Tax Registration Form

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.

  • Name

  • PAN (Permanent Account Number)

  • Address

  • Contact details of the proprietor

  • Constitution of applicant

  • Category of registrant

Service Tax Registration Status

  • You can track the status of your submitted form online through ACES account.

Documents Required for Service Tax Registration

The following documents will be required for service tax registration:

  • Address Proof

  • Power of Attorney

  • Form ST 1

  • Memorandum of Association

  • Copy of PAN card of the assesse

Who requires to be registered?

  • The input service provider and service provider who has a taxable turnover of above INR 9 lakh has to be registered.

Frequently Asked Questions

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

  1. Airport services
  2. Architect’s Services
  3. Asset Management Services by Individuals
  4. ATM operation, maintenance or management services
  5. Auction Service
  6. Authorized Service Stations for motor vehicles servicing or repairs
  7. Banking and other financial services
  8. Beauty treatment Services
  9. Brand Promotion Services
  10. Broadcasting Services
  11. Business Auxiliary Service
  12. Business Exhibition Service
  13. Business Support Service
  14. Cable Operator’s services
  15. Cargo handling Services
  16. Chartered Accountant’s (practicing) services
  17. Cleaning Services
  18. Clearing and forwarding agent’s services
  19. Clearing & processing house services
  20. Club’s or Association’s membership services 24 Commercial training or coaching services
  21. Commercial use or exploitation of any event service
  22. Commodity exchange service
  23. Company secretary’s (practicing) services
  24. Construction of residential complex service
  25. Construction or renovation of commercial / industrial buildings / pipelines / conduits services
  26. Construction Services – Preferential Location and Development
  27. Consulting engineer’s service
  28. Convention services
  29. Copyright Services
  30. Cosmetic or Plastic Surgery Service
  31. Cost accountant’s (practicing) services
  32. Courier Services
  33. Credit card, debit card, charge card or other payment cards related services
  34. Credit rating agency’s services
  35. Custom house agent’s services
  36. Design services
  37. Development & supply of content for telecommunication, advertising and on-line information services
  38. Dredging services
  39. Dry cleaning services
  40. Electricity Exchange services
  41. Erection, commissioning or installation service
  42. Event management Service
  43. Fashion Designer Service
  44. Foreign Exchange broking services
  45. Forward Contract Service
  46. Franchise 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.

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