Any person or company providing taxable services is required to pay Service Tax. Scope of Service Tax is has being increased since its inception and from 1st July, 2012, it has shifted to negative list regime from the earlier inclusive regime i.e. service tax is payable on all the services except those covered in the negative list or mega exemption list.
1) WHEN IS PERSON LIABLE TO PAY SERVICE TAX APPLICABLE?
As soon as the aggregate value of taxable service (or the billing of the services provided) exceeds INR 9 lakhs ( INR 0.9 Million) during any time of the financial year, it is mandatory for the service provider to obtain the service tax registration number. However, liability to charge service tax & its payments starts as soon as the aggregate value of taxable services exceeds INR 10 lacks (INR 1 Million).
2) WHAT IS THE RATE OF SERVICE TAX?
At present the service tax rate is 12.36% (including the education cess). The same is applicable since 01.04.2012.
3) WHAT IS THE PROCEDURE OF SERVICE TAX REGISTRATION?
A person liable for payment of service tax shall make an application to the concerned Superintendent of Central Excise in Form ST-1 for registration within a period of thirty days from the date on which a person commences the business of providing a taxable service.
The registration shall be granted by the Commissioner of Central Excise in whose jurisdiction the premises or offices, from where centralised billing or accounting is done, are located.
Where an assessee is providing a taxable service from more than one premises or offices, and does not have any centralized billing systems or centralized accounting systems, as the case may be, he shall make separate applications for registration in respect of each of such premises or offices to the jurisdictional Superintendent of Central Excise.
Where an assessee is providing more than one taxable service, even then ONLY a single application has to made to the concerned Superintendent of Central Excise.
The Superintendent of Central Excise shall after due verification of the application form, or an intimation under sub-rule (5A), as the case may be, grant a certificate of registration in Form ST-2 within seven days from the date of receipt of the documents . If the registration certificate is not granted within the said period, the registration applied for shall be deemed to have been granted.
Where there is a change in any information or details furnished by an assessee in Form ST-1 at the time of obtaining registration or he intends to furnish any additional information or detail, such change or information or details shall be intimated, in writing, by the assessee, to the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, within a period of thirty days of such change.
Where a registered assessee transfers his business to another person, the transferee shall obtain a fresh certificate of registration. Every registered assessee, who ceases to provide the taxable service for which he is registered, shall surrender his registration certificate immediately to the Superintendent of Central Excise.
Application for Service Tax Registration is filed online followed by physical submission of documents in the department.