Procedure for Registration in Service Tax- FAQ’s


1. Registration

1.1 Every person liable for paying the service tax shall make an application to the concerned Superintendent of Central Excise in Form ST-1 for registration within a period of thirty days from the date on which the service tax under section 66 of the Finance Act, 1994(32 of 1994) is levied:

Provided that where a person commences the business of providing a taxable service after such service has been levied, he shall make an application for registration within a period of thirty days from the date of such commencement. (Refer section 69 of Finance Act, 1994 & Rule 4 of the Service Tax Rules,1994)

Also, the following two categories of persons have been identified as ‘Special Category of Persons’ under The Service Tax (Registration of Special Category of Persons) Rules, 2005:

  1. Input Service Distributor;
  2. Any provider of taxable service whose ‘aggregate value of taxable service’ (‘aggregate value’ has been defined in Rule 2(b) of  The Service Tax (Registration of Special Category of Persons) Rules, 2005)  in a financial year exceeds nine lakh rupees.

‘Input service distributor’ as defined under Rule 2 (m) of CENVAT Rules, 2004 means an office of the manufacturer or producer of final products or provider of output service, which receives invoices issued under rule 4A of the Service Tax Rules, 1994 towards purchases of input services and issues invoice, bill or, as the case may be, challan for the purposes of distributing the credit of service tax paid on the said services to such manufacturer or producer or provider, as the case may be.

In case a service recipient is liable to pay service tax, as detailed at para 1.1 above, he also has to obtain registration.

1.2 The service tax is administered by the Central Excise Department. The government website www.exciseandservicetax.nic.in gives the details of the jurisdictional offices of the Central Excise Department, State-wise, District-wise as well as Commissionerate-wise.

1.3 Total 67 Central Excise & Service Tax Commissionerates, 7 exclusive Service Tax Commissionerates and 5 Large Taxpayer Units administer Service tax collection in India.

1.4 Following are the 7 Service tax Commissionerates:

  1. Mumbai-I
  2. Mumbai-II
  3. Delhi
  4. Chennai
  5. Kolkata
  6. Bangalore
  7. Ahmedabad

1.5     There are 5 Large Taxpayer Units (LTUs) as listed below:

  1. Bangalore,
  2. Chennai,
  3. Mumbai,
  4. Delhi and
  5. Kolkata

2. Procedure for Registration

2.1 Fill the Form ST-1 in duplicate. (Form ST-1 is available on the departmental website (www.cbec.gov.in). Enclose photocopy of PAN card, proof of address to be registered and copy of constitution /partner ship deed etc. of the firm, if any.

2.2 Copy of PAN card is necessary as a PAN based code (Service Tax Code) is allotted to every assessee.

2.3 These forms are required to be submitted to the jurisdictional Central Excise office (in case of seven Service Tax Commissionerates, to the jurisdictional Division office). There are separate service tax commissionerates in Mumbai, Chennai, Delhi, Kolkata, Bangalore and Ahmedabad  as mentioned in the previous chapter).

2.4 A person liable to pay service tax should file an application for registration within thirty days from the date on which the service tax on particular taxable service comes into effect or within thirty days from the commencement of his activity. (Refer Rule 4 (1) of Service Tax Rules, 1994)

2.5 Where a person, liable for paying service tax on a taxable service,

(i)           provides such service from more than one premises or offices; or

(ii)         receives such service in more than one premises or offices; or,

iii)           is having more than one premises or offices, which are engaged in relation to such service in any other manner, making such person liable for paying service tax,

and has centralized billing system or centralized accounting system in respect of such service, and such centralized billing or centralized accounting systems are located in one or more premises, he may, at his option, register such premises or offices from where centralized billing or centralized accounting systems are located.

2.5.1 The registration under sub-rule 2 of Rule 4 of the Service Tax Rules,1994, shall be granted by the Commissioner of Central Excise in whose jurisdiction the premises or offices, from where centralized billing or accounting is done, are located:

Provided that nothing contained in this sub-rule shall have any effect on the registration granted to the premises or offices having such centralized billing or centralized accounting systems, prior to the 2nd day of November, 2006.

2.6 A single registration is sufficient even when an assessee is providing more than one taxable services. However, he has to mention all the services being provided by him in the application for registration and the field office shall make suitable entries/endorsements in the registration certificate. (Refer Rule 4 (4) of Service Tax Rules, 1994)

2.7 An assessee should get the registration certificate (registration number) within 7 days from the date of submission of form S.T.1, under normal circumstances. (Refer Rule 4 (5) of Service Tax Rules, 1994)

2.8  A fresh registration is required to be obtained in case of transfer of business to another person (Refer Rule 4 (6) of Service Tax Rules, 1994)

2.9 Any registered assessee when ceases to provide the taxable service shall surrender the  registration certificate immediately. (Refer Rule 4 (7) of Service Tax Rules, 1994)

2.10    In case a registered assessee starts providing any new service from the same premises, he need not apply for a fresh registration. He can simply fill in the Form S.T.1 for necessary amendments he desires to make in his existing information. The new form may be submitted to the jurisdictional Superintendent for necessary endorsement of the new service category in his Registration certificate.

3. Payment of Service Tax

Any person providing taxable service to any person shall pay service tax at the rate specified in Sec.66 in such a manner and within such period as may be prescribed. (Sec.68 of the Finance Act, 1994)

The table below shows the rate of service tax applicable at the relevant period of time.

Sr.No.

Period

Rate of Service Tax

Rate of Education Cess

Sec. & Higher Edu Cess

1. Till 13.05.2003

5%

Nil

Nil

2. 14.05.2003 to 09.09.2004

8%

Nil

Nil

3. 10.09.2004 to 17.04.2006

10%

2% of the S.T.

Nil

4. 18.04.2006 to 31.05.2007

12%

2% of the S.T.

Nil

5. 01.06.2007 to 23.02.2009

12%

2% of S.T.

1% of S.T.

6. From 24.02.2009

10%

2% of S.T.

1% of S.T.

4. Interest

The due date for payment of service tax is 6th day of the month following the relevant month/quarter, if electronically paid and in other cases, 5th day of the month following the relevant month / quarter. It is provided under section 75 of the Finance Act, 1994 that in case of delayed payments (after due date) the assessee is required to pay simple interest at the rate prescribed. Notification No. 26/2004 dated 10.09.2004 has specified the rate of interest at 13% per annum.

The table below shows the rate of interest applicable at relevant period of time.

Sr.No. Period Rate of Interest
1. Till 11.05.2001 1.5% per month
2. 11.05.2001 to 11.05.2002 24% per annum
3. 11.05.2002 to 10.09.2004 15% per annum
4. From 10.09.2004 to 31.03.2011 13% per annum
5. From 01.04.2011 18% per annum

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