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Service Tax Registration Procedure in India

CA Shree Jain (Chartered Accountant)     06 July 2010

CA Shree Jain
Chartered Accountant 
 203 likes  1562 points

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There are many formalities we have to follow for registering Service Tax in India. All the formalities of Section 69 of the finance act, 1994 must fulfill to get sales tax registration. For registration we have to submit an application for service tax in form ST-1 to superintendent within 30 days from service tax due date. Normally for a new business which is liable for service tax must apply for service tax within 30 days from the date of starting the business. If the business owner needs to pay more than one tax, single registration is enough for all kind of taxes. Also he has to furnish all details of tax in the prescribed application form. Also centralized system is there for those who have to pay tax for more than one premise. For this, department calculates all taxes in the name of one premise for which he gets registration.

If centralized system is not available then the assessee has to make separate application for each premise separately. Also the assessee must provide some personal information like name, type of business and address while registering for service tax. According to the Service Tax Rules of 2001 the assessee has to furnish PAN card number also in the application. If PAN card number is not allotted then it must be furnished in the appropriate column. A certificate of registration in the Form ST -2 shall be given within 7 days from the date of application in the form ST-1. Also all assessee must give their service tax number in all their invoices according to the Service Tax Credit Rules of 2002.

While transferring a registered business new buyer has to make fresh application for service tax as per the rules to get new certificate. Also if any registered assessee wants to cease to provide taxable service he must return the registration certificate immediately to the service tax department. The department has power to amend the registration certificate in cases of change of address of business premises, change in name and style of firm. If any firm fails to make service tax registration even being liable to pay service tax a penalty of Rs.500/- is chargeable as per Section 75 of finance Act of 1994. Service tax payable is the amount equal to the value of taxable services done by the firm or assessee.

Due date for payment of service tax for a proprietary or partnership firm is 25th of the month after the quarter when the value of the taxable services is received. If any NRI (non resident Indian) is getting any type of rent from his assets he also liable to pay service tax as per the rules. This he can pay through any person authorized by him. A service tax payee must maintain necessary records or documents like bill file contains tax bills, receipts received after paying tax, service tax register with all tax paid details and also details of accounts related to service tax and memoranda received from branch offices.

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