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Service tax is tax on services provided in India except state of Jammu and Kashmir. It is an Indirect tax on all taxable services except those in the negative list of services. Generally, service provider collects the tax from service recipient and pays the same.Current rate of service tax is 14%. Additional Swatch Bharat Cess @ 0.50% is also applicable.
Small scale service provider providing less than Rs. 10 lacs of taxable service is exempt from service tax.
Every person providing taxable service of value exceeding Rs. 9 lacs needs to register with Service Tax Office within 30 days of exceeding turnover. Actual liability to collect and pay service tax comes only when the values of taxable service exceeds Rs. 10 lacs.
Failure to get registration attracts penalty and interest on delayed payment of service tax.
1. Even if value of services provided in a financial year by a service provider is less than the threshold, he has the option to register for service tax, though it is not compulsory.
2. An applicant providing more than one service at different locations has to register only once.
3. An assessee providing taxable services from different locations can obtain the centralized registration of that premises or office which has
centralized billing system or centralized accounting system. It’s the assessee’s option to register one of the premises as centrally registered.
4. Once registered, service tax return are required to be filed once in six months.
5. Proprietary and partnerships are required to pay Service Tax on quarterly basis, while companies etc need to pay Service Tax on monthly basis.
6. Service tax is not applicable on export of services. Hence, exporter need not get service tax registration and also need not pay any service tax.