Every person liable to pay the service tax shall within 30 days from the date on which a service becomes taxable, or from the date of commencement of business for providing taxable service, apply for registration in form ST - 1. [ Please Refer : Section 69(1) ]
Keep in mind that in case of new business venture such limit of 30 days is from the date of commencement of BUSINESS and not from date when such provider starts providing taxable service.
Illustration : If service provider commences business from 15th of July but, starts providing service from 1st of August, in such a case time limit of 30 days will be calculated from 15th of July and not from 1st August. Thus application of registration should be filed before 15th August.
How to apply for Service Tax Registration.
New Assessee Service Tax Registration Process
1. The user needs to logon to the system, through internet at http://www.aces.qov.in
2. For Service Tax registration assessee has to choose the Service Tax button from the panel appearing on the top of the webpage.
3. Click the button “New Users Click here to Register with ACES” in the Log-in screen that appears after clicking Service Tax button.
4. Fills in and submits the form “Registration with ACES”, by furnishing a self-chosen user ID and e-mail ID. User ID, once chosen is final and cannot be changed by the assessee in future.
5. The system will check for availability of the chosen User ID and then generate a password and send it by e-mail, mentioned by the assessee in the Form.
6. ACES also provides assistance of “Know your location code” for choosing correct jurisdictional office.
7. The user then have to re-log-in and proceeds with the registration with Service Tax, by filling-in the appropriate Form ST-1 by clicking the “Reg” link in the Menu bar that appears on the top of the screen. It is mandatory to use the PAN allotted to the business entity to be registered. If the assessee has applied for PAN, he can be issued a temporary registration number and after obtaining PAN, he should amend the registration form online and insert the PAN, after which a new PAN-based registration number will be issued to the assessee. For security reasons, the password should be changed immediately.
8. The system instantaneously generates an acknowledgement number after which the registration request goes to the jurisdictional Superintendent. If the department needs any clarification, the registration applications can be sent back by the department to the applicants. Similarly, before registration certificate is issued, the applicant can also withdraw his/her application.
9. The assessee is required to submit certain documents along with a signed copy of the registration application to the department for verification. After verification, the Superintendent of Service Tax issues the Registration Certificate. However, in case of request for centralized registration, the Commissioner of Service Tax approves the registration. In either case, if the requisite documents are not received within a period of 15 days, the registration application will be rejected by the department as incomplete. After the approval for issuance of a Registration Certificate is given by the competent authority, a message to this effect is sent to the assessees electronically. The assessee can view and take a print-out of this.
10. Depending on the option chosen by the assessee, the signed copy of the Registration Certificate can be sent by post or can be collected by assessee in person.
11. While submitting registration form, if the assessee makes a mistake in choosing a wrong jurisdiction (Commissionerate/Division/ Range), ACES provides a facility to the Superintendent (in case of Service Tax) to forward the application to the correct jurisdictional officer to issue registration and a message to this effect is sent to the assessee for information.
12. The registration number will be same as the current 15-digit format with minor change such as:
For-PAN based Assessees
1-10 digits - PAN of the Assessee
11-12 digits - SD (Service Tax)
13-15 - Systems generated alphanumeric serial number
For non-PAN based assessees
1-4 digits TEMP
5-10 Systems generated alpha numeric number
11-12 SD (Service Tax)
13-15 Systems generated alphanumeric serial number
Person liable for paying service tax
Generally, service providers are liable to pay the service tax but, apart from that some specified persons are also liable to pay service tax even if they are not providing service. Such specific persons who are required to pay tax : [Please Refer : Rule 2(1)(d) of the Service Tax Rules 1994.]
(A) in relation to service provided or agreed to be provided by an insurance agent to any person carrying on the insurance business, the recipient of the service;
(B) in relation to service provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,—
(I) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);
(II) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;
(III) any co-operative society established by or under any law;
(IV) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;
(V) any body corporate established, by or under any law; or
(VI) any partnership firm whether registered or not under any law including association of persons;
any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage :
Provided that when such person is located in a non-taxable territory, the provider of such service shall be liable to pay service tax.
(C) in relation to service provided or agreed to be provided by way of sponsorship to anybody corporate or partnership firm located in the taxable territory, the recipient of such service;
(D) in relation to service provided or agreed to be provided by,-
(I) an arbitral tribunal, or
(II) an individual advocate or a firm of advocates by way of legal services, to any business entity located in the taxable territory, the recipient of such service;
(E) in relation to support services provided or agreed to be provided by Government or local authority except,-
(a) renting of immovable property, and
(b) services specified sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994,
to any business entity located in the taxable territory, the recipient of such service;
(EE) in relation to service provided or agreed to be provided by a director of a company to the said company, the recipient of such service;
(F) in relation to services provided or agreed to be provided by way of :-
(a) renting of a motor vehicle designed to carry passengers, to any person who is not engaged in a similar business; or
(b) supply of manpower for any purpose [or security services]; or
(c) service portion in execution of a works contract -
by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as a body corporate, located in the taxable territory, both the service provider and the service recipient to the extent notified under sub-section (2) of section 68 of the Act, for each respectively
Persons Required to Apply for Registration :
(1) The input service distributor shall make an application to Jurisdictional Superintendent within 30 days from 16-06-2005 or commencement of business whichever is earlier in form ST – 1.
(2) Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds Rs. 9 Lakhs shall make an application to the jurisdictional Superintendent of Central Excise in form ST – 1 for registration within a period of 30 days of exceedingthe aggregate value of taxable service of Rs. 9 Lakhs. [ Please Refer : Service Tax Notification no. 10/2008 dated 01-03-2008 ]
Documents Required for Service Tax Registration
Following are the list of documents which are required to be submitted to the department after online application for Service Registration with acees.gov.in
(i) PAN of the applicant,
(ii) Address proof of the business premises
(iii) PAN of the Directors/Partners/Authorised Persons
(iv) Proof of the residence of the Directors/Partners/Authorised Persons
(v) Constitution of applicant other than individuals at the time of filing an application for registration. For e.g. Partnership deed, Memorandum of Association, Trust Deed etc.
(vi) Power of Attorney would be required in respect of authorized person(s).
SINGLE REGISTRATION :
When an assessee is providing more than one taxable services he may make single application. However, he has to mention all the services being provided by him in the application for registration.Such assessee will be granted single registration. [ Please Refer : Rule 4 (4), Service Tax Rules, 1994. ]
MULTIPLE REGISTRATION :
When a person, liable for paying service tax is providing or receiving taxable services from more than one premises or offices, making such person liable for paying service tax, and has centralised billing system or centralised accounting system in respect of such service, and such centralised billing or centralised accounting systems are located in one or more premises, he may, at his option, register such premises or offices from where centralised billing or centralised accounting systems are located. [ Please Refer : Rule 4(2), Service Tax Rules, 1994. ]
Registration in above mentioned scenario i.e. Rule 4(2) of Service Tax Rules, 1994. shall be granted by Commissioner of Central Excise in whose jurisdiction such premises or offices located which has centralised billing or accounting system. However this provision shall not have any effect on registration granted before 2nd November 2006. [ Please Refer : Rule 4(3), Service Tax Rules, 1994. ]
When a person liable for paying service tax is providing or receiving one or more than one taxable services from different premises, but he is not having centralised billing or centralised accounting system he shall make separate applications for registration in respect of each of such premises or offices to the jurisdictional Superintendent of Central Excise. [ Please Refer : Rule 4(3A), Service Tax Rules, 1994. ]
CERTIFICATE OF REGISTRATION (ST-2) :
The Superintendent of Central Excise after verification of application of registration shall grant a Certificate of Registration in form no. ST-2 within 7 days from the date of receipt of application along with the prescribed documents. The aces system e-mails the ST-2 to the registered e-mail address of the assessee. If the registration certificate is not granted within the said period, the registration applied for shall be deemed to have been granted. [ Please Refer : Rule 4(5) of Service Tax Rules, 1994. ]
Registration No. is also known as ‘Service Tax Code’ it is 15 digit PAN
Changes in Certificate of Registration :
It is obligatory on the part of the assessee to intimate in writing any changes in the information submitted at the time of applying for registration within 30 days of such change. Assessee needs to amend his ST-2 certificate online. [ Please Refer : Rule 4(5A), Service Tax Rules, 1994. ]
In case assessee is providing more than one taxable services under single registration and he ceases to provide any of the services mentioned therein the registration certificate, he should bring such change to the notice of the Superintendent of Central Excise. His registration certificates shall be amended to have the necessary effect, but will not be cancelled.
Surrender or Cancellation of Registration Certificate :
If assessee transfers his business to another person then the person to whom the business is transferred shall apply for a fresh registration certificate [ Please Refer : Rule 4(6), Service Tax Rules, 1994. ]
Every registered assessee who ceases to provide taxable service for which he is registered shall immediately surrender his registration certificate to the Superintendent of Central Excise. The Superintendent of Central Excise shall ensure that the assessee has paid all monies due to the Central Government, thereupon cancel the registration certificate. If assessee does not surrender the certificate there is no penalty charged for that, but till the time assessee is registered with the department he is compulsorily required to file Half-Yearly Returns, failure of which may attract penalty. So it is in the interest of the assessee to surrender the certificate if he ceases to provide taxable service.
[ Please Refer : Rule 4(7), 4(8), Service Tax Rules, 1994. ]
Penalty for Non- Registration :
Any person, who is required to take registration, he fails to register in accordance with the Section 69. shall be liable to a penalty which may extend to ten thousand rupees. [ Please Refer : Section 77, Finance Act 1994. ]