Service Tax is defined as an indirect tax levied by central government on the service provider who render services to the end-consumer such as restaurant, food service, repair centre and so on. The service tax levied in India was 14% as of June 2015. But now, the Service Tax has been replaced by Goods and Services Tax (GST) introduced by the central government with effect from July 2017.
Service Tax Registration Online
The Central Board of Excise and Customs (CBEC) had introduced a new software named Automation of Central Excise and Service Tax (ACES) to offer the taxpayers an easy way to process any activities related to service tax.
How to Apply for Service Tax Registration
Taxpayers are provided with hassle-free software to register themselves for service tax payments. Below given is the step-by-step process to register for service tax:
Step 1: Visit the official website of ACES at http://www.aces.gov.in/
Step 2: Select ‘Service Tax’
Step 3: Select ‘New User’ option. Now you will be redirected to the registration page
Step 4: Enter details such as Name of the Unit, Designation, Phone Number and so on to get registered
Step 5: Once you have entered all the details, you will now be able to submit the form
Step 6: After submitting the form, you will receive the username and password on your registered email within 24 hours
Service Tax Registration Form
One can find the Service Tax Registration Form online by simply visit the ACES website. The Service Tax Registration Form is called ‘Form ST 1’ and can be find online once you get register with ACES. Find below the details required to fill-in the form to apply form service tax registration:
- Details of Permanent Account Number (PAN)
- Constitution of Applicant
- Contact Details of the Proprietor
- Category of Registrant
Concept of Service Tax Registration Number
After you have got registered, the authority provided Service Tax Registration Number to the assessee. The Service Tax Registration Number consists of 15-digits which is based on the assessee’s PAN. As first 10-digits of the Service Tax Registration Number is same as the Permanent Account Number (PAN) and the remaining 11th and 12th digit are SD or ST.
Service Tax Registration Limit
The Central Board of Excise and Customs have decided the basic limit for service tax. The Service Tax Registration Limit means that service tax should be paid when the value of the services offered is over and above ₹10 lakhs. In case a service provider who has a taxable turnover of above ₹9 lakhs over 30 days is also liable to pay service tax.
Cancellation of Service Tax Registration
The Service Tax Registration of a service provider can be cancelled due to following reasons-
- A person registered under any of the existing laws
- Any change in the constitution of the business
- Any person who has taken voluntary registration under subsection (3) of section 25 has not commenced business within six months from the date of registration
- The business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity or demerged
- Registration has been obtained by means of fraud, wilful mis-statement or suppression of facts
How to Know Service Tax Registration Date?
Once the applicant has submitted the service tax registration form, he/she can track the status online by logging-in to their ACES account. Although, it takes about a week for the government to issue service tax registration certificate from the date of submission of Service Tax Registration Form ST-1.
How to Surrender Service Tax Registration Number Online?
Follow the below-mentioned steps to surrender Service Tax Registration Number Online:
Step 1: To surrender, the applicant or the taxpayer can file an online application by logging-in with the valid username and password at ACES official website.
Step 2: Then click ‘REG>Surrender’. The form for surrendering service tax registration is ST-2.
Step 3: Fill all the required details in the Form ST-2. Now click ‘Surrender ST-2’.
Step 4: Take the print out of the form and submit to the Superintendent with a covering letter and original ST-2.
Step 5: The Superintendent will check the details of the assessee whether he/she has paid all the service tax.
Step 6: Once the Superintendent and AC/DC have approved the cancellation/surrender of service tax registration, you will receive an auto-generated email on your registered email address.
Service Tax Registration: FAQs
The liability to pay service tax lies with the ‘Service Provider’. Hence, service providers are the one who are required to avail service tax registration.
Service Tax registration is mandatory for those persons in India who offer taxable services of value exceeding ₹9 lakhs in the previous financial year.
No. This is not the case. As government has made GST an obligatory process, the service charge is optional.