Service tax is an indirect tax, which is charged upon the taxable services defined u/s 66B of finance act 1994. Generally, the service provider is bound to collect the service tax from service receiver and deposit the same to the central government, which is popularly known as reverse charge mechanism. This account is governed by the Central Excise Department.
Once a person indulges in providing taxable services and his turnover exceeds Rs. One million during any financial year he must have to register himself under service tax department.
Rate of service tax:
At present, the effective rate of Service tax is 12.36 %.
The above rate comprises of Service tax @ 12 % on "Gross Value of taxable service".
Education cess [EC] @ 2 % on service tax amount Secondary and Higher Education cess [SHE] @ 1 % on service tax amount.
Interest and penalties for non compliance of service tax rules and regulations:
Service tax registration Procedure
Fill the Form ST-1 in duplicate. (Form ST-1 is available on the departmental website Enclose photocopy of PAN card, proof of address to be registered and copy of constitution /partnership deed etc. of the firm, if any.
- Copy of PAN card is necessary as a PAN based code (Service Tax Code) is allotted to every assesse.
- These forms are required to be submitted to the jurisdictional Central Excise office (in case of seven Service Tax Commission rates, to the jurisdictional Division office). There are separate service tax commission rates in Mumbai, Chennai, Delhi, Kolkata, Bangalore and Ahmadabad as mentioned in the previous chapter).
- 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.
(Refer Rule 4 (1) of Service Tax Rules, 1994)
- Where a person, liable for paying service tax on a taxable service,
- Provides such service from more than one premises or offices; or
- Receives such service in more than one premises or offices; or,
- is having more than one premises or offices, which are engaged in relation to such service in any other manner, making such person liable for paying service tax,
and has centralized billing system or centralized accounting system in respect of such service, and such centralized billing or centralized accounting systems are located in one or more premises, he may, at his option, register such premises or offices from where centralized billing or centralized accounting systems are located.
- The registration under sub-rule 2 of Rule 4 of the Service Tax Rules, 1994, 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:
- If 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 assesse 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.
(Refer Rule 4 (4) of Service Tax Rules, 1994)
- An assesse should get the registration certificate (registration number) within 7 days from the date of submission of form S.T.1, under normal circumstances.
(Refer Rule 4 (5) of Service Tax Rules, 1994)
- A fresh registration is required to be obtained in case of transfer of business to another person.
(Refer Rule 4 (6) of Service Tax Rules, 1994)
- Any registered assessed when ceases to provide the taxable service shall surrender the registration certificate immediately.
(Refer Rule 4 (7) of Service Tax Rules, 1994)
- In case a registered assesse starts providing any new service from the same premises, he need not apply for a fresh registration. He can simply fill in the Form S.T.1 for necessary amendments he desires to make in his existing information. The new form may be submitted to the jurisdictional Superintendent for necessary endorsement of the new service category in his Registration certificate.
What UVS Partners Offers
With a very exvvtensive experience in service tax online services, we are adept in this field. We have been rendering our services in the following area:
- Service tax audit,
- Registration under Service tax,
We provide assistance in getting registered with service tax department, collecting of all data required for filling form ST-1
- Preparation and filing Returns.
Assistance in filing of returns as per the relevant provisions of the service tax law: Preparation of service tax returns on half yearly basis ( to become monthly soon);
- Consultancy for maintenance of proper records and proper accounting.
- Assisting in computation of service tax payable
Assistance in computation of tax payable as per the relevant provisions in the service tax laws.
Assisting in collating the data for output (including data for payment of service tax under reverse charge basis) and input services (month wise) for computation of tax liability;
Examining and calculating set off / input tax credit to calculate the tax liability
- Consultancy on various issues relating to Service Tax.
- Assistance with respect to Assessment proceedings
Presenting the client before various authorities,
collating information and preparation of Assessment files;
Review and analyzing the assessment order issued by department,
- Compilation of data of Cenvat credit.
- Assistance in availment of notified Abatements.
- Utilization and availment of service tax credit in accordance with the Service Tax Credit Rules, 2002.
- Identify gaps and / or areas of improvements, if any and suggest indicative solutions;
- Depth study of the business operation to explore the avenues to improve tax efficiency
- Verify other commercial agreements and expenditure schedules including expenditure in foreign currency to flag the additional service tax liability if any under the new service tax regime;