2. Definition of Service
‘Service’ has been defined in clause (44) of the new section
65B and means any activity for consideration carried out by
a person for another.
“ Consideration” means everything received or recoverable
in return for a provision of service which includes monetary
payment and any consideration of non-monetary nature or
deferred consideration. Therefore consideration will include
both monetary and non-monetary consideration.
3.
4. Service Tax
Service tax is a tax which is payable on services provided by the service provider.
Just like excise duty is payable on goods manufactured, in the same way service tax
is payable on service provided.
Service tax is payable by the provider of the service to the Government of India, but
the service provider can also collect this tax from the consumer of service i.e. the
recipient of service and deposit it with the Government.
The provisions relating to Service Tax were brought into force with effect from 1st
July 1994. It extends to the whole of India except the state of Jammu & Kashmir.
The services, brought under the tax net in the year 1994-95 were:
(1) Telephone
(2) Stockbroker
(3) General Insurance
Thereafter the Finance Acts of the forthcoming years extended the scope of service
tax and covered a large number of services. By 2012, there were about 128 taxable
services.
8. Service Tax over the Years
Period Basic Rate
1/4/1994 to 13/5/2003 5%
14/5/2003 to 9/9/2004 8%
10/09/2004 to 17/04/2006 10%
18/04/2006 to 23/2/2009 12%
24/2/2009 to 31/3/2012 10%
01/04/2012 to date 12%
9. Service Tax Calculation
Service Tax rate 12%
( +) Education Cess @ 2% 0.24%
( + ) Senior & Higher Education Cess @
1% 0.12%
Total 12.36%
10. Exception
Service provider Service Receiver Applicability of Service
Tax
Inside Jammu & Kashmir Inside Jammu & Kashmir Not Applicable
Inside Jammu & Kashmir Outside Jammu & Kashmir Applicable
Outside Jammu & Kashmir Inside Jammu & Kashmir Not Applicable
11. Payment of Service Tax
Payment on amounts received during
the Quarter
Payable on or before
1st April to 30th June 5th July
1st July to 30th September 5th October
1st October to 31st December 5th January
1st January to31st March 31st March
12. Penalty in Case of Delay in
Payment of Service Tax
Period of Delay Penalty
15 days from the Due date Rs. 500
Between 16 days to 30 days from the due
date
Rs. 1000
Beyond 3o Days from the due date Rs. 1000 + 100 rs per day till the day the
filing of the return has taken place
13. Exemption
Invoice Issued for Previous Year Current Year
Aggregate Value of Taxable
Service Provided
Upto Rs. 10 lakhs Exemption Available
Aggregate Value of Taxable
Service Provided
Above Rs. 10 Lakhs Exemption Not Available
14. Registration of Service Tax
Fill the Form ST-1 in duplicate. (Form ST-1 is available on the departmental
website ( www.cbec.gov.in ) Enclose photocopy of PAN card and proof of
address to be registered.
Copy of PAN card is necessary as a PAN based code (Service Tax Code) is
allotted to every assessee.
These forms are required to be submitted to the jurisdictional Central Excise
office
A person liable to pay service tax should file an application for registration
within thirty days from the date on which the service tax on particular
taxable service comes into effect or within thirty days from the commencement
of his activity.
15. Where a person, liable for paying service tax on a taxable service,
(i) provides such service from more than one premises or offices; or
(ii) receives such service in more than one premises or offices; or,
iii)is having more than one premises or offices, which are engaged in relation
to such service in any other manner, making such person liable for paying
service tax,
3.5.1 The registration under sub-rule (2), shall be granted by the
Commissioner of Central Excise in whose jurisdiction the premises or offices,
from where centralised billing or accounting is done, are located:
Provided that nothing contained in this sub-rule shall have any effect on the
registration granted to the premises or offices having such centralised billing or
centralised accounting systems, prior to the 2nd day of November, 2006.
16. 3.6 A single registration is sufficient even when an assessee is providing more
than one taxable services. However, he has to mention all the services being
provided by him in the application for registration and the field office shall
make suitable entries/endorsements in the registration certificate.
3.7 An assessee should get the registration certificate (registration number)
within 7 days from the date of submission of form S.T.1, under normal
circumstances.
3.8 A fresh registration is required to be obtained in case of transfer of
business to another person.
3.9 Any registered assessee when ceases to provide the taxable service shall
surrender the registration certificate immediately.
3.10 In case a registered assessee starts providing any new service from the
same premises, he need not apply for a fresh registration. He can simply fill in
the Form S.T.1 for necessary amendments he desires to make in his existing
information. The new form may be submitted to the jurisdictional
Superintendent for necessary endorsement of the new service category in his
Registration certificate.
