Service Tax Registration

Service tax has to be paid to the central government by anyone who is a service provider, service receiver, or any liable entity. The registration form can be found online and the registration process too can be done online in a simple manner.

Note: Service Tax has been replaced by the Goods and Services Tax (GST) starting 1 July 2017.

Service Tax

Service tax is a type of tax levied by central government of India on certain services rendered. These exclude services listed under the negative list. The service tax payer can be anyone, the service provider, service receiver or anyone else who is liable. As of June 2015, the service tax levied is at 15%.

Service Tax Registration Online

One can apply for service tax registration online without any hassles. The central board of excise tax and customs has come up with a new software called ACES (Automation of Central excise and service tax) which aims at making taxpayers’ services better. ACES consists of the entire tax process including registration, returns, accounts, refunds and much more. One can apply for tax service registration online by registering with ACES.

Service Tax Registration Procedure

Listed below are the steps to register for service tax online:

  • Go to the official ACES website
  • Select the option ‘Service tax’
  • Once the user selects the ‘New User’ option, they will be directed to a relevant registration page
  • The assessee has to provide certain details such as name of the unit, designation, phone number, etc, in order to register
  • The user can submit the form once they are done entering the details
  • The user will receive the username and password on the email provided within 24 hours of submitting the details.

Service Tax Registration Form

One can find the service tax registration form online on ACES. The form is called ‘Form st 1’ and can be find online once you register with ACES. Listed below are some of the details that you have to fill in the form in order to successfully apply for service tax.

  • Name
  • Address
  • Details of Permanent Account Number
  • Constitution of applicant
  • Contact details of the proprietor
  • Category of registrant

Service Tax Registration Status

Once the applicant has submitted the service tax form online, they can track the progress and status of it online on their ACES account.

Documents Required for Service Tax Registration

Listed below are the documents required for service tax registration:

  • Form ST 1
  • Copy of PAN card of the assessee
  • Address proof
  • Memorandum of Association
  • Power of attorney

Key points about service tax registration:

  • No registration required if no service tax payable as all services exported.
  • Single registration even if more than one service.
  • Cenvat Credit available even if not registered.
  • Registration does not mean service tax must be paid.
  • Registration determines location of service provider and receiver.

Who requires to be registered?

  • Input service distributor.
  • Service provider who has a taxable turnover of above Rs.9 lakh.

Assessee Verification Steps for Service Tax Registration:

  • Go to the website of Central Board of Excise and Customs.
  • Enter the code of 15 digits and clear the step of image verification. Both service tax assessees and central excise assessees can be found by this method.
  • The information that you will receive is given below:
    • Address of Assessee
    • Name of Assessee
    • Location Code

Understanding the structure of Service Tax Number:

Service tax number has 15 digits that is based on the assessee’s PAN. The first 10 digits of the Service Tax Number is same as the Permanent Account Number. Digits 11 and 12 are SD or ST. If, the application you made, is only for one Permanent Account Number, the next three digits are going to be 001.

Basic limit for Service Tax:

Service Tax must be paid when the value of services shoot beyond Rs.10 lakh. However, a Service provider who has a taxable turnover of above Rs.9 lakh over 30 days must also pay Service Tax.

Frequently Asked Questions:

  1. Who has to pay service tax?

    Anyone who is a receiver of taxable service has to pay service tax.

  2. What are taxable services?

    One can refer to section 65 of the Finance Act 1994 to obtain a list of taxable services.

  3. What is the rate of service tax in India?

    The current rate of service tax in India is 14%.

  4. How long does it take to obtain service tax registration?

    It takes about a week for the government to issue Service tax registration certificate from the date of submission of form ST-1.

  5. Is there a penalty charged for not obtaining service tax registration?

    A penalty of up to Rs.10,000 can be charged in case of failure to obtain service tax registration.

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