What is Service tax? Registration, Exemption (India)

Do you know about Service Tax? Everyone, who provides a taxable service, should pay the service tax. But service providers are not paying service tax. Consumers are only paying service tax. Service providers get the money and give it to the government. But many people confused about this tax. Many people think that government is snatching money from the public through this tax. But it is not like that. Government is increasing its income through service tax. And it spends this money on travelling, salary, maintenance, schemes, pension, etc. And also build bridges, canals, roads, and ports. Following informations will help you to get a clarification about service tax.

Service Tax

Service tax is a tax which is paid by the service providers. But they collect this tax from the consumers who get goods and services from them. Service tax is charged by The Central Government of India. It is classified under Indirect Tax. It was established in 1994 by Dr Manmohan Singh when he was the Finance Minister. This tax doesn’t exist in the state of Jammu & Kashmir. If your turnover crossed 10 lac in a year, you have to pay service tax. Your turnover crossed 9 lac means, you should get service tax registration. It is said that our Ministry of Finance is thinking to increase the service tax exemption limit from 10 lac to 25 lac. Unless the consumers pay, the service providers should pay the service tax instead of them.

Service tax registration

What are the documents we need to for service tax registration?

  1. PAN card copy of the proprietor.
  2. Bank account details.
  3. Photo identity card such as PAN card, Passport, Voter Identity card, Adhar card, Driving license ( any one proof is enough ).
  4. Need mobile number and Email address to receive indications and communication.
  5. Need business premises such as rental agreement, or allotment letter from the government, or NOC from the legal owner as the proof of proprietorship.
  6. Agreement by Partners/Board of Directors/Owner for the person filing the application.
  7. Memorandum of List of Directors/Articles of Association/Partnership contract.

Service Tax Registration

Service tax registration is compulsory to collect the service tax from the customers and give that to the government.

Method 1(Online)

  1. Go to ACES website. You can see a page like this               service tax 1
  2. In that page click on “Click here” ( which is placed in New Users to Click here to Register with ACES). Now you can see a page like this                                                     service tax 2
  3. Enter the required details and click “submit”.
  4. User name and password will be sent to your email-id. Keep it carefully.
  5. Log into ACES website. Enter the new username and password, you received in the mail.                                                                                                                                      service tax 3
  6. After login, you can see the below page. There you have to change the Old password and create the new password.                                                                           service tax 4
  7. Then click on “Submit”. Now you can see a new page.                                                    service tax 5
  8. Click on REG tab and select FILL ST 1 from that. Then ST 1 Form will appear on that screen.                                                                                                                            service tax 6
  9. In that form enter the details. Then click “Next”. Now you can see the new page.   service tax 7In that page, you have to enter the details of proprietors/partners/directors/trustees/authorised signatories.
  10. If you want to give one more person details means, give the details and click on ”Save & Add New”. You can add as many people you want like this. But you can add one by one.
  11. After giving the details of the persons click on “Save & Continue”. A new page will open. You can see the all the persons details on the same page. Click on “Submit”. A new page will open where you can see Acknowledgement Receipt. Take the print as an acknowledgement.

This procedure will take two days to service tax get registered.

Note: You have to send the self-attested copy of the required documents by Speed Post/Registered Post to the jurisdictional Division/Range Office within 7 days of filing the application online.

Service Tax Number

It is a special 15 digit number. You can get this number within 7 days after filing the application for service tax registration.

Service tax exemption

Some services also get an exemption from service tax. Small Scale Providers who don’t earn 10 lac per year, need not pay this tax. Some other services also get an exemption from service tax.


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