When why and how to get Service Tax Registration?
Why to get Service Tax Registration?
Service Tax registration is mandatory as per government regulation. Service Tax registration is required to collect and pay the tax on services provided. Service Tax is to be collected from customers/clients and payable to government.
When we need to register for Service Tax?
One need to register for service tax once your receipts cross 9 Lakhs in a year, and need to start collecting taxes once the receipts cross 10 Lakh. Also in certain cases where service receiver have to pay tax, also need to register for Service Tax.
How to get Service Tax Registration?
Go to Aces website.
And once registered, fill the form ST1 to register.
Take print out of form and attach the ID Proof(PAN) and address proof.
Submit to service Tax department.
Within a week you will get Registration Certificate.
What is the cost involved in getting Registration?
There is no cost in registration. Its 100% free if you are applying. And if you appoint a professional, he may charge his professional fees.
What are the compliances after registration?
Pay the collected tax to government and file the returns.
When to start charging Service Tax in Invoices?
Once your gross receipts crosses 10 Lakhs in a year start charging Service Tax. If registered does not mean you have to compulsory charge service tax. One even if having receipts below 9 Lakhs can register under service tax, but liability arises only if receipts cross 10 Lakhs in a year.
*Year from April to March.