Service Tax Registration

As on 1st May, 2006, 95 services are identified as taxable services in India. Section 64 of the Finance Act, 1994, extends the levy of service tax to the whole of India, except the State of Jammu and Kashmir.

Generally, the liability to pay service tax has been placed on the `service provider`.
Service tax is payable @ 12% of the `gross amount` ( in specific cases partial deductions are allowed, refer section 67 of the Finance Act) charged by the service provider for providing such taxable service. The Education Cess is payable @2% of the service tax payable. The liability to pay service tax has been placed on the `receiver / recipient` of the service under certain situations.( Refer section 68 of the Finance Act and Rule 2(1)(d) of Service Tax Rules, 1994) Example: Suppose the value of taxable service is Rs.100. Service tax @12% will be Rs.12 and Education Cess @2% of the Service Tax will be Rs.0.24
The Table below shows the category of services which are taxable with the date of introduction of such service. The table also shows the `accounting heads` for each category service, for the purpose of payment of service tax, interest / penalty and Education Cess.

Service Tex Registration Service Available Jaipur Head Office Only

Procedure

Fill the Form ST-1 in duplicate. (Form ST-1 is available on the departmental website Enclose photocopy of PAN card and proof of address to be registered.

Copy of PAN card is necessary as a PAN based code (Service Tax Code) is allotted to every assesses.

These forms are required to be submitted to the jurisdictional Central Excise office .

A person liable to pay service tax should file an application for registration within thirty days from the date on which the service tax on particular taxable service comes into effect or within thirty days from the commencement of his activity.

The registration under sub-rule (2), shall be granted by the Commissioner of Central Excise in whose jurisdiction the premises or offices, from where centralized billing or accounting is done, are located:

Provided that nothing contained in this sub-rule shall have any effect on the registration granted to the premises or offices having such centralized billing or centralized accounting systems, prior to the 2nd day of November, 2006.

A single registration is sufficient even when an assessee is providing more than one taxable services. However, he has to mention all the services being provided by him in the application for registration and the field office shall make suitable entries/endorsements in the registration certificate.

An assessee should get the registration certificate (registration number) within 7 days from the date of submission of form S.T.1, under normal circumstances.

A fresh registration is required to be obtained in case of transfer of business to another person.

Any registered assessee when ceases to provide the taxable service shall surrender the registration certificate immediately.

Frequently Asked Question

Q1. What is Service Tax and who pays this tax?
Ans. 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.

Q2. Who is liable to pay service tax?
Ans. who provides the taxable service on receipt of service charges is responsible for paying the Service Tax to the Government (Sec.68 (1) of the Act). However, in the following situations, the receiver of the Services is responsible for the payment of Service tax :
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,
For the services in relation to Insurance Auxiliary Service by an Insurance Agent, the Service Tax is to be paid by the Insurance Company
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.

Q3. What are the taxable services?
Ans. Taxable Services have been specified under Section 65(105) of the Finance Act, 1994. All the taxable services as on 01.07.2010 are listed in Appendix-1. The list also shows the relevant Accounting Heads required to be mentioned on the tax payment documents (GAR-7), while depositing the Service Tax and other related dues in the banks.