Service Tax - An Overview

Service tax Registration:

Provision:

Finance Act 1994

Taxable services are detailed in Section 65(105) of the Finance Act, 1994.

Exemption:

Notification 6/2005

Rate of Tax

At present, the effective rate of Service Tax is 10.3% on the value of the taxable service. The above effective rate comprises of Service Tax @10% payable on the “gross value of taxable service”, Education Cess @ 2% on the service tax amount, and Secondary and Higher Education Cess @ 1% on the service tax amount.

When is Service Tax required to be paid?

Companies: Monthly payment; 5 days from the end of month

Documents Required:

1.                   Form ST-1

2.                   Form ST-1 acknowledgement

3.                   Authorisation Letter

4.                   Attested copy of certificate of incorporation

5.                   Attested copy of PAN

6.                   Attested copy of Form 18 or Address Proof

Procedure:

1.                   Online registration is possible through www.aces.gov.in

2.                   After registration original attested copies should be submitted to the regional office

3.                   PAN Card is a pre requisite/advisable for registration

4.                   Once registered half yearly return (ST-3) have to be submitted i.e. due date will be April 25, 2011 and October 25, 2011

5.                   Registration certificate will be issued in ST-2

More Information

www.servicetax.gov.in

www.cbec.gov.in