Service tax is a tax levied on services rendered by a person and the responsibility of payment of the tax is cast on the service provider. It is an indirect tax as it can be recovered from the service receiver by the service provider in course of his business transactions. Service Tax was introduced in India in 1994 by Chapter V of the Finance Act, 1994. It was imposed initially on three services in 1994 and the scope of the service tax has since been expanded continuously by subsequent Finance Acts. Ministry of Finance vide Notification No. 25/2012-Service Tax has stated that service tax is applicable to all the services except for the services contained in negative list w.e.f 01/07/2012. The Finance Act, 1994 extends the levy of service tax to the whole of India, except the State of Jammu & Kashmir.
The procedure to get registered for service tax is as follows:
- Filing Application: An application is to be filed in form ST 1 to the Superintendent of Central Excise in duplicate. The Form should be signed by the director/partner/sole proprietor as the case may be or the authorized signatory and must be supported by the prescribed documents.
- Obtaining Acknowledgement: Once filed, the acknowledgement for having filed the application is to be obtained on the duplicate copy for one's own reference.
- Issue of Registration certificate: If the Particulars stated in the Form are correct, then the registration certificate would be provided within a period of seven days. Where not so provided, the registration is deemed to have been granted.
Service Tax Rate
Service tax is payable @ 12% of the 'gross amount' charged by the service provider for providing such taxable service. The Education Cess is payable @ 2% and Secondary Higher Education Cess is payable @ 1% of the service tax payable.
We offer following services with regard to Service Tax:
- Filing registration application with the concerned authority.
- Tracking of registration application and ensuring speedy disposal of the same.
- Surrender of service tax registration number on event of non-applicability of the same.
- Filing service tax return.
- Consultancy on the matters related to service tax.