Service tax is an indirect tax which is levied on the services provided by a service provider in India. Service tax is paid by the service provider, later he can recover the same from the service recipient on taxable services. The Registration of Service Tax is mandatory for all service providers with a turnover exceeding Rs. 9 Lakh. Failure to register the same would result in penalties of Rs. 5,000 or Rs. 200 per day, whichever is higher would be applicable.

After having a service tax registration, filing of returns by October 25th, for the period April to September and by April 25th, for the period October to March, even if the service provider doesn’t have any revenues or income. The concerned service tax dues must be cleared before this filing. Penalties would be levied if there is any failure to pay tax returns by the due date.

Persons or entities required to pay service tax or having a service tax registration must file their service tax returns in the Form ST-3 or Form ST-3A. Service tax returns are half-yearly due and it must be e-filed. Service tax must be paid by the business entity either electronically or manually on the respective due date. The due date for the payment is determined based on the type of the business entity.

FEATURES

  • Service providers (small scale) are exempted from the service tax registration if their turnover is less than Rs. 10 Lacs annually.
  • Registration is deemed to be guaranteed if it is not issued within 7 days, after filing of form ST1 along with the relevant documents.
  • Service tax is not levied on services exported from India.
  • Service tax return is filed twice a year i.e. half yearly. Returns must be filed by 25th October and 25th April for half-year ending 30th September and 31st march respectively.

PROCESS

PREPARATION OF DOCUMENTS

Prepare the necessary information and documents required; such as the collection of tax invoices raised must be filed. Additional interest must be paid in case of service tax payments not paid before the due date.

FILING OF RETURNS

File the returns to the government. Payments must be deposited by Companies, Societies, Trust, etc. monthly while the proprietary firms and partnership firms must make return payments quarterly.

The fine is Rs. 500 if the delay is up to 15 days, Rs. 1000 if the delay is up to 30 days and an additional Rs. 100 per day thereon, subject to a maximum of Rs. 20,000.

 

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