Service Tax is an indirect tax levied by the Central Government on sale of taxable services within the territorial jurisdiction of India only. Exports of services are exempt from the service tax purview. So, if you are providing services to somebody outside India, you don’t have to charge services tax on that services. Every business engaged in providing any taxable services must get itself registered with the Service Tax Authorities, if the turnover exceeds a threshold limit of rupees nine lakhs within 30 days from the date on which the Service tax becomes due. Further it is mandatory to charge service tax if the total value of services provided exceeds rupees ten lakhs during the financial year. In case of transfer of business to another human being, a fresh registration is to be filed.
Application for registration with Service Tax Authorities is made online in Form No. ST – 1. Registration is granted in Form No. ST – 2 within 48 hours of filing of Form No. ST – 1 subject to the submission of signed documents with the Range Officer having jurisdiction over the premises. After registration, collection and payment of services tax and half yearly return must be filed on time to avoid hefty penalty. Service Tax payments are to be made on monthly basis by the Companies and on quarterly basis by the Proprietorships, Partnerships and LLPs. Non seeking registration under the Service Tax within 30 days from the date Service tax becomes applicable on to a business and non compliance of service tax laws will attract prosecution and hefty penalties.
Service Tax is a centralized registration and therefore, there is uniform process and documentation. Below is the list of documents required for making an application for Service Tax registration:
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