Today many entrepreneurs running service based business like marketplace of e-commerce business or apps based or classified websites or many more but don't know about the service tax registration which is applicable on their business so we guide you "How To Apply for the Service Tax Registration in India" Service Tax Registration is a Central Tax Registration which is applicable on service based business. so we guide you "How you Can Apply for the Service Tax Registration in India with Required Documents and other legal charges information.
Service tax is an indirect tax levied on a wide array of services specified by the Central Government under the Finance Act, 1994. The service provider (a restaurant or tour operator, for example) pays the tax and recovers the amount from its customers. To pay this tax, the service provider must be registered with the Central Government if the preceding fiscal year's turnover is over Rs. 9 lakh. However, collection must start, at the rate of 14% (Updated), only when the turnover of the business exceeds Rs. 10 lakh. Once this you cross this mark, you must always collect the tax even if your turnover is less than this in subsequent years.
So We Prepared FAQ Series base on the Several Queries which we received on our portal regarding service tax registration –
Service tax is a tax on services provided in India. Service tax is levied under the Finance Act, 1994 on certain services as specified by the Government.
Service tax is to be paid by the receiver of the service. However, service tax is a form of indirect taxation. Therefore, the person who provides the taxable service on receipt of service charges along with the service tax is responsible for paying the service tax portion to the Government. Also, small scale service providers who provide less than Rs.10 lakhs of taxable service a year is exempt from service tax.
Almost all services provided in India are taxable. To find the complete list of taxable services, refer to Section 65(105) of the Finance Act, 1994. All taxable services as on 1.5.2011 is listed in Appendix-1.
Service Tax Rate Now 14.5% (Updated). Previous Rate was 12.36%,
Service tax registration Certificate is a mandatory registration for service providers who have taxable service of value exceeding Rs.9 lakhs, in the previous financial year. Service tax registration facilitates in the identification of assesse, payment of service tax and filing of service tax returns.
Any person who has provided taxable service of value exceeding Rs.9 lakhs in the preceding financial year is required to obtain service tax registration. When a person commences a new business, he/she is required to obtain service tax registration within 30 days of commencement, if the business will have taxable service in excess of Rs.9 lakhs.