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Service Tax

Service Tax Registration

Any person or company providing taxable services is required to pay Service Tax. Scope of Service TaxService Tax is has being increased since its inception and from 1st July, 2012, it has shifted to negative list regime from the earlier inclusive regime i.e. service tax is payable on all the services except those covered in the negative list or mega exemption list. .

 

 

1. WHEN IS PERSON LIABLE TO PAY SERVICE TAX APPLICABLE?

As soon as the aggregate value of taxable service (or the billing of the services provided) exceeds INR 9 lakhs ( INR 0.9 Million) during any time of the financial year, it is mandatory for the service provider to obtain the service tax registration number. However, liability to charge service tax & its payments starts as soon as the aggregate value of taxable services exceeds INR 10 lacks (INR 1 Million).

 

2. WHAT IS THE RATE OF SERVICE TAX?

At present the service tax rate is 12.36% (including the education cess). The same is applicable since 01.04.2012.

 

3. WHAT IS THE PROCEDURE OF SERVICE TAX REGISTRATION?

A person liable for payment of 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 a person commences the business of providing a taxable service.

  • The registration shall be granted by the Commissioner of Central Excise in whose jurisdiction the premises or offices, from where centralised billing or accounting is done, are located.
  • Where an assessee is providing a taxable service from more than one premises or offices, and does not have any centralized billing systems or centralized accounting systems, as the case may be, he shall make separate applications for registration in respect of each of such premises or offices to the jurisdictional Superintendent of Central Excise.
  • Where an assessee is providing more than one taxable service, even then ONLY a single application has to made to the concerned Superintendent of Central Excise.
  • The Superintendent of Central Excise shall after due verification of the application form, or an intimation under sub-rule (5A), as the case may be, grant a certificate of registration in Form ST-2 within seven days from the date of receipt of the documents . If the registration certificate is not granted within the said period, the registration applied for shall be deemed to have been granted.
  • Where there is a change in any information or details furnished by an assessee in Form ST-1 at the time of obtaining registration or he intends to furnish any additional information or detail, such change or information or details shall be intimated, in writing, by the assessee, to the jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, within a period of thirty days of such change.
  • Where a registered assessee transfers his business to another person, the transferee shall obtain a fresh certificate of registration.
  • Every registered assessee, who ceases to provide the taxable service for which he is registered, shall surrender his registration certificate immediately to the Superintendent of Central Excise.

Application for Service Tax Registration is filed online followed by physical submission of documents in the department.

 

4. WHAT ARE THE VARIOUS COMPLIANCES TO BE DONE AFTER SERVICE TAX REGISTRATION? 

 

Sr. No. Compliance Services to be provided by PKP
1 Computation of Service tax payable Assistance in computation of tax payable as per the relevant provisions in the service tax laws. This activity will include:
  • Collecting information with regard to invoices rasied / services rendered, service tax charged, services tax collected from Customer , service tax paid under reverse charge basis and service tax paid on input services for computation of service tax liability;
  • Examining and calculating set off / input tax credit to ascertain the tax liability to pay.
  • Assistance in making the payment of service tax to the authority / deposition of service tax online on behalf of client & providing the challan. Service tax has to be paid by 5th of next month in case of Company and for others, latest by 5th day from the end of Quarter.
  • Review the service tax exemption/ abatement adopted by the management for various services and providing our opinion on the same.
2 Filing of returns Assistance in filing of returns as per the relevant provisions of the service tax law. This activity will include:
  • Preparation & Compilation of service tax returns on half yearly basis;
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  • Filing of the service tax return as per the requirement of Authority.
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  • Ensuring that Service tax return filed is accepted by the Authority without any objections.
3 Assessment proceedings Assistance is service tax assessment. This activity will include:
  • Collecting information and preparation of Assessment files;
  • Representations before the authorities, and attend the assessment proceedings.
  • Filing of necessary documents/information as & when required by the assessment authorities.
  • Liasion with assessment authorities.
  • Review and analyze assessment orders issued by the service tax authorities.
  • To file appeal and stay application if need be and to represent before higher appellant authorities.
4 Service tax audit Assistance is service Tax Audit. This activity will include:
  • Check the Constitutional Validity of Audit.
  • Assisting company in preparation of response to Audit query.
  • Attend the Audit to provide information & documents as & when asked.
  • Liasion with assessment authorities.
  • Review and analyze assessment orders issued by the service tax authorities.
  • To file appeal and stay application if need be and to represent before higher appellant authorities.
5 Other Compliance
  • Periodic meeting with client to discuss and update client on the new developments in connection with service tax matters enumerated above; 
  • Providing latest updates & judgments related with client business.
  • Assistance in undertaking compliance formalities with respect to change in service tax registration certificate like any additional place of business / change in Authorized signatory/ additional services
  • Day to day Consultancy on various matters.

 

 


 

Contact PKP : Service Tax Consultant in Delhi

 

Contact Person : Mr. Prakash Gupta

 

Email -  info@pkpconsult.com, pkpconsult1977@gmail.com

 

Telephone Numbers : +91-11-23382207/ 23388753

 

Mobile Number : +91-9811031841


 

Prakash K Prakash PKP Consult +91-9811031841 pkpconsult1977@gmail.com