Service Tax In India

1
Service Tax In India Service Tax Rate, Rules
And Registration
2
(No Transcript)
3

• With the appreciation given to start-ups, there
  are many entrepreneurs, who are running services
  like e-commerce business or apps based websites.
  Yet the one thought that plagues their mind is
  the issue of service tax registration.
• In layman terms, service tax registration is a
  central tax registration that is applicable on
  service based businesses.
• Currently, the service tax rate in India is 15.
  However, before explaining service tax, it is
  important to define what exactly a service is.
  The law in India defines service as an activity
  that one person performs for the other for
  consideration.
• Service provider is the one who providing with
  the service and the one receiving the service is
  called the service recipient.

4

• Following are the essential features of a
  service-
• Performance of an activity
• The service must be provided from one person to
  the other, it cannot be provided to oneself
• Some sort of payment is received in return for
  the payment
• It must be kept in mind that service tax does not
  apply to the state of Jammu and Kashmir. Only
  services provided or agreed to be provided in a
  taxable territory are chargeable to tax.
• The Place of Provision (POP) rules determine the
  point of time when taxes will be levied on the
  service provided.
• The importance of the point of taxation is that
  it determines the rate of tax that will be
  finally charged on the value of service.

5

• Rules of Service Tax
• As per the Finance Act, 1994, a set of rules has
  been created by the Government of India to assess
  and collect service tax in India.
• The service tax is an indirect tax that is levied
  on a wide array of services that has been
  specified by the Central Government under the
  Finance Act, 1994. The tax is paid by the service
  provider and then the amount is recovered from
  the customers.
• For the payment of this tax, the service provider
  needs to be registered with the Central
  Government if the turnover of the fiscal year is
  over Rs.9 lakhs. The collection at the rate of
  15 starts when the turnover of the business
  exceeds Rs.10 lakhs.
• Once this mark is crossed, the tax must be
  collected even if the turnover is less in the
  subsequent years.

6

• Service tax registration
• Service tax registration helps the Service Tax
  Department
• to identify, assess and track all the aspects of
  service tax compliance.
• There are certain documents required for
  obtaining a service tax
• registration in India-
• Self-attested copy of the PAN card of the
  proprietor or company or LLP or legal entity
• Photograph and any sort of proof of identity
  filing the service tax registration application
• Bank account details
• Memorandum of Association (for company)
• Articles of Association (for company)
• List of Directors (for company)
• Authorization by the Board of Directors/Partners/P
  roprietor for the person filing the application
• The business transaction numbers obtained from
  the other Government departments or agencies such
  as Customs Registration No., Import Export code
  number, State Sales Tax number etc that have been
  issued prior to the filing of the service tax
  registration application

7

• How to apply for Service Tax Registration
• Step 1- apply for Service Tax Registration
  through Form ST-1 online
• Step 2-service tax registration certificate is
  provided within 2 days
• Step 3-self-attested copies of application
  documents need to be sent to concerned ST office
• Step 4-resolve the issues that might evolve
• However the service tax registration certificate
  might be revoked under the following
  circumstances-
• If the premises are found to be non-existent or
  not in possession of the assesse
• Non-receipt of documents within 15 days of filing
  the registration application
• Incomplete or incorrect documents
• Filing taxes and service tax registration can be
  a mind-blogging affair. Easing the process of tax
  filings and service tax registration procedure is
  Filingenie. To know how we can help you, visit
  our website http//www.filingenie.com

8
(No Transcript)