Service Tax

Service Tax Application is mandatory for anyone involved in the service industry. You must have eaten at a restaurant at some point of time or the other. Have you noticed that when you are billed in a restaurant, it is not just the food that you pay for, but also the tax? Did you know that the tax is even imposed on the service of hospitality that is rendered?
What is Service Tax? A service tax is an indirect tax that is imposed by the Government of India on the rendering of certain services that are listed as ‘taxable services’ in India. Who should register for Service Tax ?
In most cases, it is the service provider who is responsible for paying service tax to the Government. However, in certain cases, even the recipient of the service may be responsible. The Finance Act 1994 and the Service Tax Rules 1994 lay down the requirements as to the registration for service tax. According to Section 69 of the Act and Rule 4 of the Rules, the following persons need to register:?
a person who has provided a ‘taxable service’, the value of which exceeds Rs. 9 lakhs, in the previous financial year ?
‘Input Service Distributors’ as per the amended Notification. No.26/2005-ST dated 07.06.2005?
A receiver of services (as specified in Section 68(2) read with Rule 2(d)
Service Tax Registration: When Necessary?
1. Where a foreign service provider having no establishment in India has provided a ‘taxable service’.
2. Where Insurance Auxiliary services have been rendered by an Insurance Agent. Here, the tax is paid by the Insurance Company.
3. Where mutual fund distributors pay a taxable service, the Mutual Fund or the Asset Management Company are responsible for paying the tax.
4. Where for road transport of goods, a Goods Transport Company has provided a ‘taxable service’, the person liable to pay freight, if the consignor/consignee is
A company ?
A factory ?
A corporation ?
A society ?
A co-operative society ?
A body corporate or a partnership firm ?
A registered dealer of excisable goods ?
Service Tax: Rates Currently a service tax of 12% is applicable, which is payable on the gross amount of the taxable service. Additionally, 3% Education Cess is to be paid on the service tax amount.
Why should you register for Service Tax
The registration for service tax is an identification of the assesse.
Service Tax Application: Process involved
First, the form ST-1 should be filled.?
The documents to be given-copy of PAN card, address proof of registration and in case of firm, constitution or partnership deed ?
The Commissioner of Central Excise of the concerned jurisdiction grants registration
In the event of non-payment of service tax, penalty can be imposed under law! ?