Service tax is the tax imposed by central government on those businesses who are providing or giving services to the customers. This tax is usually borne by the customers themselves. This tax is imposed on service providers for certain kind of services. Currently, the service tax rate prevailing in India is 14.50%. Services like hotels, restaurant, movie theaters etc. Every business providing services to consumers have to obtain a service tax registration within 30 days of commencing its business.
It is not mandatory for every service providing businesses. It is mandatory for those business firms who have provided services amounting to Rs 9 lacs or exceeding Rs 9 lacs in a previous financial year. Those firms who are not obligating these rules have to pay a penalty of Rs 100 per day which can exceed up to Rs 10,000 per day.
Documents required for service tax registration
Given below is the details of documents required for service tax registration:
- PAN card copy of the owner of the business entity.
- Recent Photograph and identity proof of the person filing the application which includes radar card, voter ID card, driving license etc.
- List of all the proposed directors of the company.
- Companies memorandum and articles of association.
- Details of the main bank account of the owner
- Approval is required from all the directors, promoters for the person who is filing the application. Without approval, application cannot be filed.
- Various other documents such as import-export code, state sales tax number, central sales tax number, VAT, CIN which is company index number.
- Every business entity except in the state of Jammu and Kashmir is required to acquire service tax from its customers and pay to the government.
- Registration process starts with filling the ST-1 form online. The business entities doing the registration first time have to create an account first. Following are the documents which have to be submitted:
- Address proof
- PAN card copy
- Identity proof has to submit which include radar card, driving license, voter ID card
- Statement of your bank account
- Two photos clearly were taken
- Certificate of incorporation
- Memorandum and articles of association
- If the authority is satisfied with the above-mentioned documents then registration will be given to you in about 2 days of filing online form.
- The business firms can start paying their taxes online after receiving service tax registration certificate. This certificate will serve as the proof for every business firm.
- The above-mentioned documents need to be sent through courier with 7 days for future purposes. Self-attested documents can only be used for sending. Documents can be sent through speed post or registered post.
- The registration will be ceased if documents are improper or incorrect if the address mentioned in the documents is not correct.
- After obtaining the service tax registration, business entities start paying tax online. The payment can either be made online or through cheques.
Non-payment of service tax
In case a service provider doesn’t pay tax on time then a simple interest of 18% p.a is applicable. The penalty can also be imposed on amount 100 per day. The total amount of penalty cannot increase the amount of service tax due.
Other relevant points regarding registration
- Every applicant has to write its PAN No. on the registration form.
- It is also necessary to give your email ID and mobile number on the registration form
Time period of payment
The time payment period is quarterly in the case of individuals, proprietor, and partnership.
The time payment period is monthly in the case of companies, trust or societies.
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