Service tax is an indirect tax levied on a wide array of services specified by the Central Government under the Finance Act, 1994. A Delhi-based service provider (a restaurant or tour operator, for instance) pays the tax and recovers the amount from 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 starts, at the rate of 15%, only when the turnover of the business exceeds Rs. 10 lakh. Once this mark is crossed, you must always collect the tax even if your turnover is less than this in subsequent years. Service tax registration certificate is a mandatory registration for service providers who have taxable service of value exceeding Rs.9 lakh, in the previous financial year. Service tax registration facilitates in the identification of assessee, payment of service tax and filing of service tax returns.
How to Apply for Service Tax Registration
Applicants seeking registration for single premises in service tax shall file the application online in the Automation of Central Excise and Service Tax (ACES) website www.aces.gov.in in Form ST-1. The registration requires the Permanent Account Number (PAN) of the proprietor or the legal entity being registered to be quoted in the application. The applicant has to quote the email address and mobile number in the requisite column of the application form for communication with the department. Existing registrants who have not submitted this information are required to file an amendment application. Once the completed application form is filed in ACES, the registration is granted online within two days, thus initiating trust-based registration. On grant of registration, the applicant is enabled to electronically pay service tax. Click here to find out how to make service tax payments
Documents required for Service Tax Registration
The applicant is required to submit a self-attested copy of the following documents by registered post/Speed Post to the concerned Division, within 7 days of filing the Form ST-1 online, for the purposes of verification: 1. Copy of the PAN card of the proprietor or the legal entity registered; 2. Photograph and proof of identity of the person filing the application namely PAN card, passport, voter identity card, Aadhar Card, driving license, or any other photo-identity card issued by the central government, state government or a public sector undertaking; 3. To establish possession of the premises, document to be registered such as proof of ownership, lease or rent agreement, allotment letter from the government, or no objection certificate from the legal owner; 4. Details of the main bank account; 5. Memorandum/articles of association/list of directors; 6. Authorisation by the board of directors/partners/proprietor for the person filing the application; 7. Business transaction numbers obtained such as customs registration number (BIN), import export code (IEC), state sales tax number (VAT), central sales tax number, and company index number, which have been issued prior to the filing of the service tax registration application. Click here to find out how to file service tax returns