You are advised to obtain a Service tax Number IMMEDIATELY WITHOUT ANY DELAY. This is because your turnover has been over 10 Lakhs in the preceding financial year.
Service tax is an indirect tax levied on a wide array of services specified by the Central Government under the Finance Act, 1994. The service provider (a restaurant or tour operator, for example) pays the tax and recovers the amount from its customers. To pay this tax, the service provider must be registered with the Central Government if the preceding fiscal year's turnover is over Rs. 9 lakh. However, collection must start, at the rate of 14% (Updated), only when the turnover of the business exceeds Rs. 10 lakh. Once this you cross this mark, you must always collect the tax even if your turnover is less than this in subsequent years.
Almost all services provided in India are taxable. To find the complete list of taxable services, refer to Section 65(105) of the Finance Act, 1994. All taxable services as on 1.5.2011 is listed in Appendix-1. Service tax registration Certificate is a mandatory registration for service providers who have taxable service of value exceeding Rs.9 lakhs, in the previous financial year. Service tax registration facilitates in the identification of assesse, payment of service tax and filing of service tax returns.
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. To obtain service tax registration, a copy of PAN Card, proof of address of business and one business place address proof or constitution of the business [Partnership deed, Incorporation Certificate, etc.,] is required. Service tax registration certificate must be issued by the Government within a period of seven days from the date of submission of application ST-1 along with all the relevant documents. In case the registration certificate is not issued within seven days, the registration applied for is deemed to have been granted.
Failure of registration may attract a penalty of upto Rs.10,000/-, 5000/- or Rs.200/- for every day during which the failure continues, whichever is higher. In this case, such a charge will be sought from you for a period of atleast 8 months, as the new financial year began in April, 2016 and you did not apply then, you will be fined accordingly on applying this time around. Service tax payments can be made at specified branches of designated banks. The list of designated banks can be obtained from the Central Exicise or Sales Tax office. Sales tax payments should be made using Form G.A.R.7. You should rely on Chartered Accountants or legal professional to take care of service tax returns.
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