Any person who has provided taxable service of value exceeding Rs.9 lakhs in the
preceding financial year is required to obtain service tax registration. When a
person commences a new business, he/she is required to obtain service tax
registration within 30 days of commencement, if the business will have taxable
service in excess of Rs.9 lakhs.
Service Tax Highlights
Small Scale Service Providers
Small scale service providers who provide taxable services of less than Rs.10 lakhs
in a year is wholly exempted from service tax and service tax registration.
Service Tax Registration
Service tax registration must be obtained by any person who provided a taxable
service of value exceeding Rs.9 lakhs, in the previous financial year. Failure to
obtain service tax registration can result in penalty
Service Tax Return Filing
Service Tax Return Form ST-3 must be filed twice in a year. Return for half year
ending 30th September and 31st March are required to be filed by 25th October and
25th April, respectively.
Service Tax Payments
Service Tax Payments must be deposited in designated banks quarterly in case of
Proprietary Firms or Partnership Firms and monthly in the case of Companies, Trusts,
NO Service Tax on Exports
For services exported from India, service tax is not applicable. Therefore, exporters
of service are not required to pay service tax. However, it is advisable for service
exporters to obtain service tax registration.
In case Form ST-2, Registration of Service Tax is not issued within seven days of
filing of Form ST-1 with all the relevant documents, the service tax registration is
automatically deemed to be granted.