Service Tax Registration procedure: Documents required for Registration, Payment of service tax, Filing of Service Tax Return, Penalty / Fine for delay

In response to the various queries of our clients, we are publishing information related to requirement of registration with service tax authority, time limit for payment of service tax, due date for filing service tax returns, penalties/fine for delay etc.

Any person liable to pay service tax as per Section 68 of Finance Act 1994 has to apply to the Superintendent of Central Excise of the particular area.

Form to apply for Service Tax Registration

Registration form for service tax is Form ST-1

Time limit to for service tax registration
Person who is liable to pay service tax should apply for registration within 30 days from the date on which the service tax become chargeable. But a person who has commenced his business for providing taxable services after the date when Service Tax is levied, the application for registration is to be made within 30 days from the date of commencement of business. (Refer Rule 4 (1) of Service Tax Rules, 1994)

Single Registration for more than one service
All assesses who are providing different taxable services needs only single registration. The application should contain the list of all taxable services he is providing.

Registration of single premise for Centralized billing system
If an assessee is providing services from more than one premise and has a centralized billing system at any one of such premises, he has the option to register only one premise from where the billing is done.

Registration of all premises for decentralized billing system
If the assessee is proving taxable services from more than one premise, and does not have centralized billing system, he has to make a separate application of registration in respect of each of such premises.

Transfer of business of registered assessee to another
If a registered assessee transfers his business to another, he is entitled to obtain a fresh registration certificate.

Surrender of registration certificate
Every registered assessee who ceases to provide taxable service for which he is registered shall surrender his registration certificate immediately.

Change of name, style and address in Service Tax
The assessee can apply for amendment of registration certificate issued in case of various grounds such as change of address of business premises, change in name and style of firm etc.

Threshold limit for service tax registration
There is no minimum or threshold limit prescribed for voluntary registration

Basic Exemption Limit in service tax Registration
Currently the basic Exemption limit is Rs. 10 lakhs

Penalty for Non Registration of Service Tax
As per Section 77(1)(a) non registration or delayed registration of service tax attracts penalty of Rs. 200 per day upto Rs. 5000/-.

Penalty for Non Payment or delayed payment of Service Tax
As per Section 76 nonpayment or delayed payment of service tax attracts penalty of Rs. 200 per day or 2% of such tax whichever is higher.

Due date for payment of Service Tax
For Individual or a proprietary firm or a partnership firm
Due date for payment of Service Tax is on or before 5th of the month immediately following that quarter when the value of taxable services is received.

For other assesses
The due date for payment of Service Tax is on or before 5th of the month immediately following the month in which the value of taxable services is received.

Payment of Service Tax by Non Resident Indian (NRI)
A Non-Resident Indian (NRI) or a person from outside India who is liable to pay Service Tax on taxable services rendered, but does not have any office in India, shall pay the Service Tax through any other person authorized by him.

Provisional Assessment of Tax on the basis of amount deposited
The assessee who is not able to correctly estimate the actual amount of Service Tax payable for any month or quarter may make a request in writing to the Central Excise Officer to make a provisional assessment of tax on the basis of amount deposited.

Payment of Service Tax
The service tax liable to be paid by the assessee has to be paid to the credit of the Central Government and the service tax and shall be deposited in a bank designated by the Central Board of Excise and Customs in Form TR-6 or any manner prescribed by the Central Board of Excise and Customs.

Due date for filing Service Tax Returns
As per the service tax rules every tax payers had to file their half yearly return for the period 1st April to 30th September on or before 25th October and the second half yearly return from 1st October to 31st March by 25th April. But now as per the amendment in Rule 7 every assessee needs to file their service tax return for the period 01.04.2012 to 30.06.2012 instead of 01.04.2012 to 30.09.2012 and the due date of the returns remains the same. However, now it has been extended from 25th October 2012 to 25th November 2012 for current year.

Records to be maintained by the Assessee
There is no strict guide and list of documents to be maintained by the assessee. But the assessee may maintain the following documents:

All bills numbered in serial issued to the clients in respect of taxable service rendered.

Receipt if any issued to the client in respect of payment received
Service tax register which showing bills issued, payments received and tax deposited

Copy of all credit notes issued to the clients
A list of all accounts, maintained in relation to service tax including memoranda received from branch offices. This is to be furnished with the Superintendent of Central Excise only at time of filing of first return.

Documents required to submit for registration of Service Tax

For Local/Single Registration

1. Copy of PAN card of the assessee.

2. Proof of the address of the premises to be registered i.e. copy of telephone bill or Electricity bill. Rent agreement in the name of the company or in the name of proprietor or partner or firm in the case of proprietary or document accepted by any of Central or State Government Department e.g. Income Tax or Sales Tax or Registrar of Companies certificate or passport in the case of address.

3. In case of partnership firm- Copy of Partnership Deed.

4. In case of companies- copy of Memorandum of Association with Certificate of Incorporation.

For Centralized Registration
In addition to the above, following documents are also needs to submit for Centralized registration. The proof of address in respect of each of the premises or branch for which centralized registration is sought.