As per the rules framed by the Indian Government, a Service Tax registration number is mandatory for any person or entity providing taxable services of over Rs.9 lakh. This tax registration helps the Service Tax Department identify assess and track all aspects of service tax compliance.
For the assessee, service tax registration is required to deposit service tax, file service tax returns, and maintain compliance with service tax regulations.
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What is Service Tax?
Service Tax is simply a tax on services. It is a tax imposed by the government on services provided in the country. The service tax came into effect in 1994. Actually, it was introduced by the then Finance Minister Dr. Manmohan Singh. All service providers in India, except those in the state of Jammu and Kashmir, are required to pay this tax.
The Govt. has set the current rate at 12.36% on the gross value of the service provided.
Additionally, you will need to deposit this tax on a monthly or quarterly basis. However, you can pay this either by manually depositing in the bank or by online payment of service tax.
Documents Required for Service Tax Registration Number In India
You must submit a self-attested copy of the following documents for obtaining a Service Tax registration number:
- Self-attested copy of the PAN Card of the Proprietor or the legal entity registered.
- Photograph and identity proof of the person filing the application namely PAN Card, Passport, Voter ID Card, Aadhar Card, Driving License, etc.
- Address proof for the address submitted along with proof of ownership, lease or rent agreement, and allotment letter from the Government.
- No Objection Certificate from the legal owner.
- Bank Account Details
- Memorandum of Association (For Company) & Articles of Association (For Company)
- List of Directors (For the Company) and authorization by the Board of Directors / Partners / Proprietor for the person filing the application.
- Business transaction numbers obtained from other Government departments or agencies such as Customs Registration No. (BIN No), Import Export Code (IEC) number, GST Registration Number, Central Sales Tax Number, and Company Index Number (CIN) which have been issued prior to the filing of the application.
How To Apply For Service Tax Registration Number
One can file the service tax registration application via the ST-1 form and can submit it online. At the time of submission, users have to create an account before furnishing the details. Therefore, that account becomes a permanent account for all matters related to service tax.
After applying for STR online an assessee needs to take a print acknowledgment slip, sign, and submit the hard copy of the ST-1 form to the commissioner with whom you are registering yourself within 24 hours. Additionally, you will need to have several documents at the time of filing an application. The list includes a copy of the pan card, residence proof, and the constitution of the applicant.
As per service tax rules 1994, the superintendent shall after verification of the application either grant the STR Registration Certificate (ST-2) or send information for non-acceptance of the Registration within 7 working days.
The department will allow the applicant a 15-character Service Tax Number. And you will need to require to quote on all your invoices. One can choose an online option also to get the registration.
Every assessee needs to submit a half-yearly return in form ST-3 or ST-3A. However, you must submit it along with copies of the TR-6 challan.
Failure to obtain service tax registration would attract penalties in terms of section 77 of the Finance Act, 1994.
Do You Still Require Service Tax Registration After GST Implementation?
After the implementation of GST in India on 01 July 2017, the service tax registration has been withdrawn by CBEC. Instead, companies will require to register them under the Goods and Service Tax (GST). Companies having an annual turnover of more than 20 lakhs Rupees must be registered for GST. In some special categories, GST registration is a must for 10 lakhs INR turnover.