INTRODUCTION:

BASIC CONCEPTS
Definition of Service [Section 65B(44)]
Earlier, under the selective approach of taxation of services, the word service
was nowhere defined in the Financial Act,1994. In the negative list approach of taxation
of services, the definition of service gains paramount importance. In order to determine
where a person is liable to pay service tax, the first question he needs to answer is
whether the activity undertaken by him come within the ambit of definition of service.
Consequently, section 65B (44) defines the word service. For ease of understanding,
the definition of service tax may be divided into three sections:-

Meaning of service
Service means
(i)
(ii)
(iii)

Any activity for consideration

Carried out by a person for another and
Includes a declared service.

APPLICABILITY:
Provision:
1) Service tax extends to the whole of India. Except state of jammu&kasmir.
2) It shall come into force on such date as the central government may by notification in
the official Gazzette appoint.
3) It shall to taxable services Provided on or after the commencement of service tax.

COMMENTS:
1) WHEN: The Finance Act 1994 come into force from 1-7-1994.
2) WHAT: Vide section 64(3) the levy applies to all taxable service provided.
3) WHERE: Vide Section 64(1) the provision of the Act extends to the whole of the
India except to the state of jammu& Kashmir.
4) INDIA: India Means
a) The Territory of the union as reffered into clauses (2) & (3) of article 1 of the
constitution.
b) Its territory waters, continental shelf, exclusive economic zone or any other maritime
zone & other maritime zones Act, 1976.
c) The seabed and the subsoil underlying the territorial waters.
d) The air space above its territory and territorial waters and.
e) In the Installation, structures and vessels located in the continental shelf of India and
the Exclusive economic zone of India, for the purpose of prospecting or extraction
production of mineral oil and natural gas and supply there of [SECTION 65B(27)]
Indian territorial waters extend upto 12 nautical miles from the Indians landmass.
5) JAMMU AND KASHMIR-the provisions of the Act do not extended to Jammu &
Kashmir hence, services provided in the states of Jammu & Kashmir are not liable to
service tax However, if a person from Jammu & Kashmir provides the service tax as
the location where service is consumed is relevant . Merely because the office of the
services provider is situated to Jammu & Kashmir. It does not mean that service is
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provided in Jammu & Kashmir. After 1-7-2014,service tax is not payable, if the
provision of service as per the place of provision of service rules, 2014 is the Jammu
& Kashmir .

SERVICE TAX LAW

Service tax was introduced in the year 1994 but till date, there is no
independent statute for levying service tax. However , following sources provided
statutory provisions relating to service tax can be broadly grouped under the
following under the following categories:
(a) FINANCE ACT,1994
The statutory provision relating to levy of service tax on services were first
promulgated through chapter V of the finance Act, 1994. Since then Chapter V of the
finance Act, 1994 is working as the Act for the service tax levy. Later, in the year
2003,the Finance Act 2003 inserted Chapter VA to deal with advance rulings. In the
year 2004, the provisions relating to levy of Education Cess on the amount of
service tax were made applicable through Chapter VI of the Finance (No.2) Act,2004.
(a) RULES ON SERVICE TAX
Service 94 the Chapter V and section 96-1 of Chapter VA of the Finance
Act, 1994 grants power to the Central Government for making rules for effective
carrying out the provisions of these Chapter. Using these power, the Central
Government has issued service Tax Rules 1994, service Tax (Advance Ruling)
Rules, 2003, service Tax ( Registration of Special Category of persons)
Rules,2005, Service Tax (Determination of Value) Rules,2006, point of tax
rules,2011 and Place of provision of Service Rules, 2012. Rules should be read
with the statutory provisions contained in the Act. Rules are made for carrying out
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of the provision of the Act and the rules cannot override the provisions contained
in the Act i.e. in short, the rules can never override the Act and in case of conflict
Act will prevail.
(b) NOTIFICATION ON SERVICE TAX
Sections 93and 94 of chapter V, and section 96-1 of chapter VA of the
financial Act,1994 empower the central government to issued notifications to
exempt any service from service tax and to make rules to implement service tax
provisions, Accordingly, notification on service tax have been issued by the
central government from time to time. These notifications usually declare date of
enforceability of service tax provision, provide rules relating to service tax, make
amendments therein, provide or withdraw exemptions from service tax or deal
with any other matter which the central government may think would facilitate the
government of service tax matters.
(c) CIRCULARS OR OFFICE LETTER (INSTRUCTIONS) ON SERVICE
TAX:
The central Board of excise and customs (CBES) issues departmental
circulars or instruction letters from time to time to explain the scope of taxable
service

and

the

scheme

of

service

tax

administration

etc.

these

circulars/instructions have to be read with the statutory provisions and

notifications on tax.
(d) OREDERS ON SERVICE TAX
Orders on service tax may be issued either by the CBEC or by the central
government .rule 3 of the service tax Rules,1994, empower the CBEC to appoint
such central Excise Officers as it

thinks fit for exercising the powers under

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chapter V of the Finance Act,1994. According

ly, orders have been issued by

the CBEC, from time to time, to define jurisdiction of central Excise Officers for
the purposes of service tax.

(e) TRADE NOTICES ON SERVICE TAX:

Trade notice are issued by the Central Excise/Service tax commission
rates. These commisionerates receive various instruction from the ministry of
finance or central board of excise & customs for effective implementation and
administration of the various provision of service tax law. The same are circulated
among the field officers and the instructions which pertain to trade are
communicated to them in the form

of trade notice. Trade associations are

supplied with the copies of these trade notices.

Individual assesses may also apply for copies of trade notices. The trade
notice disseminate the contents of the notifications and circulars/letters/orders,
define their jurisdiction, identify the bank in which service tax can be adiposities;
give classifications regarding service tax matters, etc.

CHARGEABILITY OF SERVICE TAX

Section 66 B of chapter V of the finance act 1994 is the changes section which
mentions the determinates of service tax the section can be analyzed as follows

There shall be levied a tax

At rate of twelve per cent
On the value of all service
Other than those service specified in the negative list
Provide or agreed to be provided
In the taxable territory
By one person to another and
Collected in such manner as may be prescribed

DECLARED SERVICES
Declared service are the following 9 specified in section 66 E of the Act

RENTING: renting of immoveable property

CONSTRUCTION: construction of a complex, building, civil structure or a part
thereof, include a complex or building intended for sales to buyer, wholly or partly,
except where the entire consideration is received after issuance of certificate of

completion by a competent authority

IPR: temporary transfer or permitting the use or enjoyment of

property right
SOFTWARE; development, design, programming, customization adaption, up

gradation, enhancement, implementation of information technology software

OBLIGATION; agreeing to the obligation to refrain from an act or to tolerate an act

or a situation or to do an act
HIRING; transfer of good by way of hiring,leasing, licensing or any such manner
without transfer of right to use such good.
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any intellectual

HP: actives in relation to delivery of goods on hire purchase or any system of

paymentby instalment
WORKS CONTRACT: service portion in execution of a works contract
FOOD OR DIRNK: service portion in activity where in goods being food or any
other article of human consumption or any drink is supplied in any manner as part
the activity

EXCLUDED SERVICES
The definition of service u/s 65 B (44) provided that service does not include.

TITLE: any activity that constitutes only a transfer in tittle of goods or immovable

property by way of sale, gift or in any other manner.

GOODS: a transfer, delivery or supply of goods which is deemed to be a sale of

goods within the meaning of clause of article 366 of the constitution.

MONEY: a transaction only in money or actionable claim.
EMPLOYEE: a service provided by an employee to an employer in the employer in

course of the employment

FEES: fees payable to court a tribunal set up under a law for the time being in force.
MP/MLA: DUTIES OF MP/MLA
CONSTITUTIONAL POST: duties of person holding constitutional post.
GOVERNMENT BODY: duties of member of government body.

SERVICES IN NEGATIVE LIST

In terms of section 66B of the act. Service tax be liveable on all service provided
in the taxable territory by a person to anther for a consideration other than the services
specified in the negative list the service specified in the negative list are not taxable the
negative list of service is specified in the act itself section 66D in all there are 17 heads of
service that have been specified in the negative list as shown in the below.
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Service by government or a local authority.

Excluding the following service to the extent they are not covered elsewhere;
a) Service by the department of post by way of speed post express parcel post life
insurance and agency provide to a person other than government.
b) Service in relation to an aircraft to a vessel inside or outside the parcel of post or
an airport
c) Transport of goods or passengers or
d) Support service other than service covered under clauses (a) to (c) above provide
to business entities.
Service by the reserve bank of India
Service by foreign diplomatic mission located in India
Service relating to agriculture or agricultural produce by way of
a) Agricultural operations directly related to production of any agricultural produce
including cultivation harvesting plant protection or testing.
b) Supply of farm lobour
c) Processes carried out at an agricultural farm including lending, pruning, cutting
harvesting, drying cleaning, trimming, sun drying, fumigating, curing, sorting,
grading, cooling or bulk packaging and such like operation which do not alter
essential characteristic of agricultural produce but make it only marketable for the
primary marker.
d) Renting or leasing of agro machinery or vacant land with or without a structure
incidental to use its use.
e) Loading, unloading, packing, storage or where house of agricultural produce.
f) Agricultural extension service
g) Service by any agricultural produce marketing committee or board or service

provide
Trading of goods
Any process amounting to manufacture or production of goods
Selling by way access to a road or bridge on payment of toll charges
Betting, gambling or lottery
Admission to entertainment events or access to amusements facilities
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Transmission or distribution of electricity by an electricity transmission or

a)
b)
c)

a)

distribution utility
Service by way of
Pre-school education and education up to higher secondary school or equivalent
Educations as a part a curriculum for obtaining a qualification recognized by law.
Education as part of an approved Vocation course.
Service by way renting of residential dwelling for use as residence
Service by way of
Extending deposits, loans in advances in so far as the considerations is represent

by way of interest or discount

b) Inter-se sale or purchase of foreign currency amongst banks or authorized dealers

of foreign exchange or amongst banks and such dealer.

Service of transportation of passengers without accompanied belonging by
a) A stage carriage
b) Railways in a class other than
c) First class
d) An air conditioned coach
e) Metro, monorail or tramway
f) Inland waterways
g) Public transport, other than predominantly for tourism purpose in a vessel
between placed located in India and
h) Metered cabs, radio taxis or auto rickshawS
Service by way of transportation of goods
a) By road except the service of
a. A goods transportation agency
b. A courier agency
b) By an aircraft or vessel from a place outside India up to the customs stations of
clearance in india
c) By inland waterways
Funeral burial crematorium or mortuary service including transporting of the
deceased.

MEGA EXEMPTIONS
1. Service provided to the untied nation or a specified international organisations
2. Health care service clinic establishment, an authorized medical practitioner or
para medics
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3. Service by a veterinary clinic in relation to health care of animals or birds

4. Service by an entity registered under section 12AA of the income tax act (43OF
5.

6.

1961) by way of charitable activies

Service by a person by way of
Renting of precincts of religious place meant for general public or
Conduct of any religious ceremony
Service Provided by
i) An arbitral tribunal to
Any person than a business entity or
A business entity with a turnover up to rupees ten lakh in the preceding
financial year
ii) An individual as an advocate or partnership firm of advocate by way of legal

service to

An advocate or partnership fir of advocate providing legal service

An person other than a business entity or
A business entity with a turnover up to rupees ten lakh in the preceding
financial year or

iii) A person represented on an arbitral tribunal, to an arbitral tribunal.

7. Service by way of technical testing or analysis of newly development drugs,
including vaccines and

herbal remedies on human participants by a clinic

research organization approved to conduct clinical trials by the drug controller

general of India
8. Service by way of training or coaching in recreational activities relating to acts,
culture or sport
9. Service Provided to an education; institution in respect of education exempted
from service by way of
Auxiliary educational services or
Renting of immovable property
10. Service provided to a recognized sports body by
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An individual as a player, referee, umpire coach or term manager for participation

in a sporting event organized by sports body

Another recognized sports body
11. Service by way of sponsorship of sporting event organdies
By a national sports federation, or its affiliated federation where the participating

terms or individual represent any district, state or zone

By association of India Universities, inter university sport board school games
federation of India, all Indian all the sport council for the deaf, Paralympic

committee of India or special olympisbharat

By central civil service cultural and sport board
As part of national games, by Indian Olympic association or
Under panchayatYuvakreesanaurkhelabhiyaanschem
12. Service provide to the government a local authority or government authority by
way of construction , erection, commission, installation, completion fitting out,
repair, maintenances, revaluation or alteration of-- A civil structure or any other original work meant predominantly for use other

than for commerce, industry or any other business or profession

A historical; monument, archaeological site or remains of national importance
archaeological excitation or antiquity specified under the ancient monument

and archaeological sites and remains act ,1958

A structure meant predominantly for use as i) an educational ii) a clinical or iii)

an art or cultural establishment

Canal, dam or there irrigation works
Pipeline, conduit or plant for i) water supply ii) water treatment or) sewerage
treatment or disposal a residential complex predominantly meant of self- use or
the of their employees or other person specified in the explanation 1 to clause

44 of section 65 B of the said act

13. Service provide by wayof construction, erection, commissioning installation,
completion, fitting out, repair, maintenance, renovation or alterations of

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A road, bridge, tunnel or terminal for road transportation for use by general

public
A civil structure or any other original works pirating to scheme under

Jawaharlal Nehru national urban renewal mission or Rajiv Awassyojana

A building owned by an entity registered under section 12AA of income tax

act,1961 and meant predominantly for religious use by general public

A pollution control or effluent treatment plant, except located as part of factory

or
A structure meant for funeral, burial or cremation of deceased
14. Services by way construction erection, commission or installation of original

works pertaining to--An airport, port or railways, including monorail or metro

A single residential unit otherwise than as a part a residential complex
Low cost house up to carpet area of 60 square meters per house in a housing
project approved by computer authority empowerment under the scheme of
affordable housing in partnership framed by the ministry of housing and urban

poverty alleviation, movement of India

Post-harvest storage infrastructure for agricultural produce including a cold

storages for such purpose or

Mechanized food grain handling system, machinery or equipment for units

processing agricultural produce as food stuff excluding alcoholic beverages

15. Service provided by way of temporary transfer of permitting the use of enjoyment
eco a copyright--Covered under clause of sub-section1) of section 12 of the copyright act
1957 relating to original literacy, dramatic musical or artistic works of
cinematograph film for exhibition in cinema theatre
16. Service by a performing artist in folk or classical hall froms of music or dance or
theatre excluding service provided by such artist as brand ambassador.
17. Service by way of collcting or providing or loading purpose, having declared
tariff of unit of accommodation below rupess one thousand per day or equivalent.
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18. Service provide in relation of a hotel, inn, guest house, club composite or other
commercial places meant for residential or lodging purpose, having declared tariff
of unit of accommodation below rupess one thousand per day or equivalent.
19. Service provide in relation of a hotel, inn, guest house, club composite or other
commercial places meant for residential or lodging purpose, having the facility of
air conditioning or central air heating in any part of the establishment at any time
during the year.
20. Service by way of transportation by rail or a vessel from one place in India to
inother of the following goods: Omitted
Relief materials meant for victim of natural or man-made disaster, calamities

accidents or mishap
Defence or military equipment
Omitted
Newspapers or magazines registered with the registrar of newspapers
Railway equipment or materials
Agricultural produce
Foodstuff including flours tea, coffee, jiggery, sugar, milk product salt and

edible oil, excluding alcoholic beverages or

Chemical fertilizer and oilcakes
21. Service provided by a goods transport agency, by way of transport in a goods
carriage of
Agricultural produce
Goods where gross amount charges for transportation of goods on a
consignment transported in single carriage does not exceed one thousand five

hundred rupees
Goods where gross amount charges for transportation of goods on a
consignment transported in single carriage does not exceed Seven hundred fifty
rupees

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Foodstuff including flours tea, coffee, jiggery, sugar, milk product salt and
Relief materials meant for victim of natural or man-made disaster, calamities

accidents or mishap
edible oil, excluding alcoholic beverages or
Chemical fertilizer and oilcakes
Newspapers or magazines registered with the registrar of newspapers
Defence or military equipment
Service by way of giving on hire
To state transport undertaking a motor vehicle meant to carry more than twelve

22.

passengers or
To goods transport agency a means of transportation of goods
23. Transport or passengers with or without accompanied belongings, by
Air, embarks from or terminating in an airport located in the state of Arunachal
Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura

or at Bagdogra located in west Bengal

A contact carriage for the transportation of passengers, excluding tourisms

conducted tour, charter or hire or

Ropeway, cable car or aerial tramway
24. Omitted
25. Service provided to government, a local authority or a government authority by
way of--- Carrying out any activity in relation to any function ordinarily end- trusted to
a municipality in relation to water supply, public health, sanitation
conservancy, solid waste maintenance or slum improvements and up gradation
or
Repair or maintenance of a vessel
26. Services of general insurances business provided under following schemes___
Hut insurance scheme
Cattle insurance under swarnajaynti gram swarozgaryojna
Scheme for insurance of tribal
Janata persona accident policy and gamin accident policy
Group personal accident policy for self-employment women
Agricultural plumpest and failed well insurance
Premia collectedand failed well insurance
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Weather based crop insurance scheme or the modifies national agricultural

insurance scheme, approved by the government of India and implemented

by the ministry of agriculture

Jan ArogyaBima Policy
National agricultural insurance scheme
Pilot scheme on seed crop insurance
Central sector scheme on cattle insurance
Universal health insurance scheme
Rashtriuaswasthyabimayojana or
Coconut palm insurance scheme
26.a]. service of life insurance business provided under following scheme
Janashreebimayojana or
Aamaadmiblimayojana
27. Service provided by an incubate up to a total turnover of fifty lakh rupees in
financial year subject to the following condition, namely The total turnover had not exceeded fifty lakh rupees during the preceding

financial year and

A period of three year has not been elapsed from the date of entering on to an

agreement as an incubate
28. Service by an unincorporated body or anon- profit entity registered under any law
for the time being in force, to its own member by way of reimbursement of
charges of share of contribution
As a trade union
For the provision of carrying out any activity which is exempt from the levy of

service tax or
Up to an amount of five thousand rupees per month per member for sourcing of
goods or service from a third person for the common use of its member in a

housing society or residential

29. Service by the following person in respective capacities
Sub-broker or an authorizes person to a stock broker
Authorizes person to a member of commodity exchanges
Mutual fund agent to a mutual fund or assets management company
Distribution to a mutual fund or assets management company
Selling agent or distribution of sim cards or exchanges coupon vouchers
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Business facilities or business correspondent to a banking company or an

insurance company in a rural area or

Sub-contractor providing service by way of works contract to other contractors

providing works contract service which are exempt

30. Carrying out an intermediate production process as job work in relation to
Agriculture, printing, or textile processing
Cut and polished diamond and gemstones or plain and studded jewellery of
gold and other precious metal, falling under chapter 71 of the central excise

tariff act 1985

Any goods on which appropriate duty is payable by the principal

manufacturer or
Processes of electroplating, zinc planting, anodizing, heat treatment, power
coating painting including spray painting or auto black, during the course of
manufactory of the parts of systems or sewing machines up to an aggregate
value of taxable service of the specified processes of one hundred and fifty
lakh rupees in financial year subject to the condition that such aggregate value
had not exceeded one hundred and fifty lakh rupees during the preceding

financial year
31. Service by an organization to any person in respect of business exhibition held
outside India
32. Service by way of making telephone calls from Departmentally run public telephone
Guaranteed public telephone operating only for local calls or
Free telephone at airport and hospital where no bills are being issued
33. Service by way of slaughtering
34. Service received from a provider of service located in non-taxable territory by
Government , a local authority, a government authority or an individual in
relation to any purpose other commerce, industry or any other business or
profession

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An entity registered under section 12AA of the income tax act 1961 for the

purposes of providing charitable activates or

A person located in non-taxable territory
35. Service of public libraries by way of lending of books, publications or any other

knowledge- enhancing content or material

36. Service by employees state insurance corporation to person governed under the
employees insurance act, 1948
37. Service by way of transfer of going concern as whole or an independent thereof
38. Service by way of public conveniences such as provided of facilities of
bathroom, washroom, lavatories, urinals or toilets
39. Service by a government authority by way activity in relation to any function
entrusted to a municipality under article 243W of the constitution

LEVY OF SERVICE TAX

THRESHOLD EXEMPTION [33/2014]
1. RS.10LAKHS
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Taxable service provided by a service provider are exempted from whole of service tax
livable there-on up to the aggregate taxable value Rs.10 lakhs
2. NOT APPLICABLE
Above exemption is not application to
Taxable service provided by a person under a brand name or trade name, whether

registered on not, of another person or

Such value of taxable service in respect of which service tax shall be paid by
recipient of service under S.68(2) read with service tax rules, 1994.

3. CONDITIONS
Above exemption is admissible subject of following coditions

Option: taxable service provider has the option not avail the said exemption and
pay service tax on the taxable service and such option once exercised in financial

year shall not be withdrawn during the remaining part of such financial year
No. CENVAT credit on capital on inputs: the provider of taxable service shall not
avail cenvat credit of service tax paid on any input used for providing taxable

service on which exemption of small scale in availed

No. CENVAT credit on capital goods the provider of taxable service shall not
avail cenvat credit under rule 3 of the cen vat credit rule 2004

4. 1.7.2014
This notification shall come into force on the 1st day of july 2014
5. Special points the following special point should be kept in mind

Brand name
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:If a person two service a taxable service under a brand name of another person
and anther taxable service threshold exemption will not apply to the service under
brand name however, he can avail threshold exemption for the other service
threshold exemption is not available if the brand name is of a service provider

exemption is available if the brand name is in respect of good

TAX
By recipient the threshold exemption does not apply where tax is payable by
service recipient on behalf of the service provider, thus, an insurance company
required on behalf of insurance agents will have to pay tax on insurance
commission earned by an insurance agent, even if the amount agent will have to
pay tax on insurance commission earned by an insurance agent, even if the

amount is less than threshold exemption i.e Rs.10 lakh.

INVOICE
The threshold exemption is computed on this basis of invoice raised and not the
payment received, once the invoice issued cross the limit of Rs.10 lakh, the
subsequent service become taxable, the exemption is not affected even if payment

is not received subsequently

GTA
For goods transport agency the aggregate value, is to be determined after
excluding the amount charged by the GAT for which the consignor is liable to pay

the tax
OPTION
The decision not to claim the exemption and pay tax must be taken by the service
provider at the commencement of the financial year itself before that first date on
which payment of tax become due.

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SPECIAL PROVISION FOR PAYMENT OF SERVICE TAX

Air travel agent rule 6(7)
Person liable for paying the service tax in relation to the sevices of booking of
ticket for travel by air provided by an air travel agent shall have the option to pay
following amount instead of paying service tax the rate of 12%
In the case of

Option to pay an amount calculated at the

rate of
Domestic booking of passage for travel by air 0.6% of the basis fare
International booking of passage of travel by 1.2% if the basis fare
air

Life Insurance Rule 6[7]

An insurer carrying on life insurance business shall have the option to pay on the
gross premium charged from a policy holder reduced by the amount allocated for
investment or savings on behalf of policy holder, if such amount is intimated to the
policy holder at time of providing of service.where

amount of the gross premium

allocated for investment or saving on behalf of policy holder is not intimated to the policy
holder at the time of providing of service:

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First year

On 3% of the gross amount of premium

Subsequent year

charged
On 1.5% of the gross amount of premium
charged

Lottery Rule 6(7)

An optional mode of payment of service tax has been proved for the taxable
service of promotion marketing or organizing assisting in organizing lottery in the
following manner instead of paying service tax at the rate of tax of 12%
Where the guaranteed lottery prize pay-out Rs.7000 on every Rs.10 lakh of aggregate
>80%

face value of lottery ticket printed by the

organizing state for a draw

Where the guaranteed lottery prize pay-out Rs.11000 on every Rs.10 lakh of aggregate
<80%

face value of lottery ticket printed by the

organizing state for a draw

SERVICE TAX REGISTRATION [S 69 & RULE 4]

1. APPLICATION:
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The following person should apply for registration under the service tax act
Every person who has provided a taxable service of value exceeding Rs.9 lakh, in
the proceeding Financial year, is required to register with the service tax office

having jurisdictions over the premises or office of such service provided.

A recipient who is liable to pay service tax
The input service distributors

2. NEED:
Registration in identification of an assesse, identification is necessary to deposit service
tax, file return and undertaken various processes ordained by low relating to service tax, a
person liable to pay service tax must apply for registration before he stare paying service
tax and filling of return. Service provide tax must apply for registration before he stars
paying service tax and filling of return. This is normally granted with in 7 day of filling
of application, if registration is not granted with in seven day, it is deemed to have been
granted, failure to obtain registration would attract penalty up to Rs.20000 or Rs.200 for
every day during which such failure continues, whichever is higher.
3. PERIOD:
When a person commences business of providing a taxable service, he is required

to register himself with in 30 days of such commencement of business.

In case service tax extanded to an new service, an exsting service provide must
register himself, unless he is eligible for exemption under any notification, within
a period of 30 days from the date of new levy.

4. PROCEDURE:
A prospective service tax assesse or input service distribution seeking registration should
file an application in from ST-1 before the jurisdictional service taps officer. To verify the
correctness of declaration on the above from, certain document such as copy pan card
proof of address of business premises(s) from, certain document such as copy of PAN
card, proof of address of business premise constitution of the business may by the
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registration authority the copies may be self-certifed by the applicant, in case of doubts in
select cases, original documents may have to be presented for verification.
5. REGISTRATION CERTIFICATE:
The registration certification in the from ST-2 should be issued within a period of seven
days from the date of submission of application ST-1 along with document.
6. MULTIPLE LOCATIONS:
Service providers having centralized accounting or centralized billing system who are
located in one or more premises at their option may register such premises or office firm
where centralized accounting systems are located and thus have centralized registration.
7. PAN:
Having PAN allotted by the income tax department is a must for obtaining service tax
registration because the service tax code registration number is generated based on PAN
issued by the income tax department the PAN bases service tax code registration number
is a must for payment of service tax using the G.A.R 7 from.

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CONCLUSION
Service Tax is a tax imposed by Government of India on services provided
in India. The service provider collects the tax and pays the same to the government. It is
charged on all services except the services covered in the negative list (Section 66d of
Finance Act'1994) of services & services covered under Mega Exemption Notification
(Notification NO. 25/2012 ST dated 20.06.2012).
The current rate is 12.% on gross value of the service. According to Rule 5 of
Service Tax Rules, 1994, records include computerized data and means the record as
maintained by an assessee in accordance with the various laws in force from time to time.
Records maintained as such shall be acceptable to Central Excise Officer. Every assessee
is required to furnish to the Central Excise Officer at the time of filing his return for the
first time a list of all accounts maintained by the assessee in relation to Service Tax
including memoranda received from his branch offices. This intimation may be sent
along with a covering letter while filing the service tax return for the first time.

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BIBLOGRAPHY

Direct and Indirect Taxation- IPCC Study Module

Indirect Taxation Sem IV Textbook
www.servicetax.gov.in/

www.aces.com
www.icai.org
The Finance Act,1994

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