Service Tax is one among the indirect taxes in India that is being levied on a range of services as specified by the Government of India under the Finance Act, 1994.
Service tax collection has to be started at a rate of 15% in the event of the turnover of the business exceeding Rs.10 lakh. Upon collecting service tax, even if it were for just one month, it becomes mandatory that it has to be continuously collected then onwards, regardless of revenue is above or below Rs.10 lakh per year.
Service tax payment must be made to the government of India through designated branches of select banks or through online means. Period of service tax payment is quarterly for sole proprietorships, partnerships, and LLPs, whereas monthly for all other entities. Service tax return has to be filed twice a year, with due dates as October for the period of April to September and April for the period of October to March
It is mandatory for persons who have provided services worth Rs.9 Lakhs in a financial year, failing which will result in drawing penalty under section 77 of the Finance Act, 1994.
Those providing taxable service below Rs.10 Lakhs an year are totally exempted from service tax net and thus, service tax registration
Payment toward service tax needs to be made in the designated banks on quarterly basis by proprietorships and monthly basis by companies and other forms of businesses
Service providers need to file service tax return in Form ST-3 twice a year, namely, for half year period ending 30th September by 25th October and for the period ending 31st March by 25th April.
Service Tax is not applicable to services that are exported from India – exporters need not pay service tax. Nonetheless, it is advisable that service exporters obtain service tax registration.
In spite of filing the Form ST-1 along with necessary documents, if in case Registration has not been issued under seven days, then service tax registration is deemed to be automatically granted.
Our tax experts will check your application fully. We will fill in the necessary forms, gather all relevant documents, and get your signatures on the required format.
Having prepared the application completely in all respects, Apnalegal obtains Form SDT-1 Registration and then submit the application in hard copy along with all relevant documents to the concerned department
When all supporting documents and the service tax registration application have been submitted, the concerned tax department will verify them and allot Service Tax Registration in the form of ST-2 for the business.