Service Tax
Tax Rate At Present the effective rate is 10.30%.
Registration Requirement
Any person who provides taxable service to get himself registered with the central excise department within 30 days from the date of commencement of providing of taxable service. Each premises from where taxable service or services is provided to be registered but common registration may be permissible for all premises from where taxable services are provided. Taxable service provider should apply for registration to superintendent of central excise in the application form ST-1 along with follow documents
» Address proof of premises (Election I- card, Ration card, Telephone bill, Permanent Account Number)
» Incase of company memorandum and articles of association also required to be attached.
Note: Penalty for Non Registration with in 30 days from the date of commencement of providing services is Rs1000/-
Categories of Services on which service tax is applicable.
Till date as many as 124 services have been covered under the act effectively. For ready reference details of the services in chronological order of their introduction is given below:
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Small Services Providers :-
Small units whose turnover is less than Rs 10 lakhs per annum are exempt from service tax. But they are required to get themselves registered with Service Tax Authorities once their turnover exceed Rs.9 Lakh during the financial year. Exemption is available, even if turnover crosses Rs.10 Lakh in current financial year, assessee need not have to pay taxes till Rs.10 Lakh and he will be liable to pay service tax only on turnover exceeding Rs.10 Lakh. However, if turnover exceeds Rs.10 Lakhs, there would be no exemption of Rs.10 Lakh in the next financial year.
| Name of Service | Abatement / deduction | Taxable |
| (i) Mandap Keeper | 40% | 60% |
| (ii) Tour Operator a. In respect of package tour. b. In the relation to booking of accommodation only. c. In respect of tour other than package tour. |
75% 90% 60% |
25% 10% 40% |
| (iii) Erection, Commissioning or installation | 67% | 33% |
| (iv) Custom House Agents | 85% | 15% |
| (v) Rent a Cab Operator | 60% | 40% |
| (vi) Convention Services | 40% | 60% |
| (vii) Commercial or Industrial Construction Services | 67% | 33% |
| (viii) Outdoor catering Services | 50% | 50% |
| (ix) Pandal or Shamiana Contractor | 30% | 70% |
| (x) Transport of goods by Road; | 75%; | 25% |
| (xi) Complex Construction Services | 67% | 33% |
| (x) Transport of goods in container by Rail. | 70% | 30% |
The above exemptions are subject to following two conditions :-
Services to UN Agencies/SEZ - :
Services provided to UN and
International Agencies and supplies to SEZ or developer are exempt.
How to make payment of service tax
Every person, who is the provider of taxable service, is liable to pay service tax. Incase of any person who is use service of non-resident service provider then the user of service is liable to pay service tax instead of service provider.
Any payments received in advance also liable to pay service tax. The service tax should be deposited in the specified bank through challan Form GAR-7.
Due date for payment of Service Tax to the A/c of Government can be summarized as under :- For Company :- Monthly liability. Deposit tax so collected by 5th of next month. For month of march deposit by 31st March.
For other than Company :- Quarterly liability. Deposit by 5th of month next to the end of quarter. For month of quarter ended 31st March deposit by 31st March.
| Quarter ended on | Due Date for payment of Service Tax |
| 30th June | 5th July |
| 30th September | 5th October |
| 31st December | 5th January |
| 31st March | 31st March |
NOTE :-Due Date of Payment is 6th of month, if the duty is deposited electronically through internet banking.
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Service Tax Compliance
Service Tax has now become one of the major sources of yielding revenue to the exchequer. It has been extended to several items with enhanced rates in recent budgets. It's scope is very much likely to be widened and rates to be raised further.
The rules and regulations and various procedures laid down under service Tax are very cumbersome, tedious and best with the problem of interpretation , disputes and litigation all its provisions have to be completed with very strictly . Even a minor lathes can land you in soup . The tax has to be deposited in treasury with in the stipulated period and various returns are to be filed on prescribed forms with in specified dates failing which return penal action in called for.
We have specially trained staff to handle the entire Service Tax work you may entrust this burden on us and feel free to focus your attention to enhance your business or profession.
Compliance Services Offer
Service Tax Return
Every taxable service provider has to file return within prescribed Form ST-3. If a person provides more than one services, separate ST-3 for each services to be filed. The due dates for service tax returns are:
- 25th April for half year October to March.
- 25th October for half year April to September.
We have specially trained staff to handle the entire Service Tax work you may entrust this burden on us and feel free to focus your attention to enhance your business or profession.
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