Service Tax – Registration and Checklist
Registration refers to identification of an assessee. Identification is necessary to deposit service tax, file returns and undertake various processes and adhere procedures laid down by law.
Every person who has provided the taxable service of value exceeding Rs. 9 lacs, in the financial year, is required to register with Service Tax. In case a recipient of services is liable to pay service tax, he also has to obtain registration (infamous Reverse Charge Mechanism). Even, an Input Service Distributor has to obtain service tax registration although he is not a service provider.
A prospective Service Tax assessee (i.e. service provider or service receiver) or Input Service Distributor, seeking registration should file an application in Form ST-1 (in duplicate) before the service tax authorities. Along with the form, additional documents like copy of PAN, proof of address of business premise, proof regarding constitution of the business, shall be required by the registering authority to check the authenticity of the registration. Once the authorities are satisfied with the form and documents, they shall provide the Registration Certificate in Form ST-3.
Let us see the points to consider by a person who provides the service:-
- Nature of services provided
- Total value of services provided in the last year and current year
- Whether the service provider has multiple business premises
- Whether the nature of service falls under Negative list provided under service tax laws
- Whether general exemption is available for services provided
- Whether the service provider is eligible for value based exemptions
- Whether any abatement is available on taxable value of services provided
- Whether any input tax credit is available against the payment of service tax
The above checklist shall ensure effective registration, appropriate payment of service tax and efficient filing of service tax returns.