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Service Tax is an indirect levy imposed under Chapter V of the Finance Act, 1994 as amended. The tax is applicable to services specified in the chapter called "taxable services". At present the rate of Service Tax is eight percent to be levied on the "value of taxable service". Generally speaking "value of taxable service" means the gross amount received by the service provider for the taxable service rendered by him. The person who provides the taxable service on receipt of charges is responsible for paying the Service Tax to the Government. Where the service is provided by a person other than Indian resident or who does not have any establishment in India then the services receiver in India is liable to pay service tax.
Service Tax is administered by the Central Excise Commissionerates working under the Central Board of Excise & Customs, Department of Revenue, Ministry of Finance, Government of India.
Services Subject To Tax
The provisions relating to Service Tax were brought into force with effect from 1st July 1994. It extends to whole of India except the state of Jammu & Kashmir. The services, brought under the tax net are:
The Service Tax is leviable on the 'gross amount' charged by the service provider from the client, from the dates as notified and indicated above.
The rate of Service Tax has also been increased from 5% to 8% on all the taxable services w.e.f. 14.5.2003.
Payment of Service Tax
In respect of other categories, the tax is payable on monthly basis and is to be paid by 25th day of the succeeding month.
Service Tax is administered by the Central Excise Commissionerates working under the Central Board of Excise & Customs, Department of Revenue, Ministry of Finance, Government of India. The unique feature of Service Tax is reliance on collection of tax, primarily through voluntary compliance.
PROCESS FOR REGISTRATION
All persons providing taxable services are required to register with the Central Excise department. They would have to take only one registration even if they operate from more than one premise but have centralised billing at one place. However, if such persons do not have Centralised billing at one place, then they will have to register at each place separately. Besides, only one registration is required to be taken even if an individual provides more than one service but from the same premises.
Generally, all Commissionerates of Central Excise, have a Service Tax Cell, headed by Assistant Commissioner/Deputy Commissioner. However, in certain Commissionerates, separate Service Tax Divisions have been constituted. The work is also delegated to Central Excise Divisions in many Commissionerates. A prospective assessee of Service Tax can approach the Assistant Commissioner/Deputy Commissioner in charge of Service Tax cell of the Commissionerates or Central Excise Division for registration depending upon the arrangements made in the Commissionerate.
A prospective taxable service provider seeking registration should file an application in Form ST-1 (in duplicate) before the jurisdictional Central Excise officer/Service Tax officer within thirty days from the date of notification of the taxable service. Department is required to issue the registration certificate within 7 days of the receipt of application. In case of failure to issue registration certificate within 7 days, the registration applied for is deemed to have been granted and the assessee can carry on with his activities.
IMPORTANT CLARIFICATIONS PAYMENT OF TAX IN CASE OF DIFFERENT PREMISES AND SERVICES
Where the assessee is providing the service from more than one premises and has centralised billilng system
When an assessee is providing a taxable service from more than one premises or office and has a centralised billing system in respect of services rendered to clients from all such premises or offices at any one premises or office, he may opt for registering only the premises or office from where such centralised billing is done. Similarly if the assessee does billing from his regional office in respect of branch office falling within that region he may register his regional office(s) on his option.
Where the assessee is providing service from more than one premises but does not have centralised billing system
Where an assessee is providing a taxable service from more than one premises or office, but does not have any centralised billing system, he is required to obtain registration in respect of each of such premises or offices to the concerned Central Excise Officer.
Where the assessee is providing more than one service from the same premises
Where an assessee is providing more than one taxable service from the same premises, he may make a single application for registration mentioning therein all the taxable services provided by him, to the concerned Central Excise Officer.
Adjudication and Appeal
DIRECTORATE GENERAL OF SERVICE TAX MUMBAI
9TH Floor, Piramal chambers, Jijibhoy Lane, Parel, Mumbai - 400012
EPABX : 2410 2584, 2410 2586, 24102589
FAX : 2417 8515 / 2410 2587
STD : 022
COMMISSIONERAT OF CENTRAL EXCISE
I C.R. Building, I.P. Estate
Service Tax Division
Block-11,7th Floor, CGO Complex, Lodhi Road, New Delhi.
Central Excise MOD-1
8, Deep Shikha Building 2nd Floor,
Rajendra Place, New Delhi
Central Excise MOD-II
37 Nehru Place. New Delhi
Central Excise MOD-III,
Rajendra Place. New Delhi
Central Excise MOD-IV
G-80, Preet Vihar New Delhi
Central Excise MOD-V,
C-19, DDA Community Centre,
Janak Puri, New Delhi
Central Excise MOD-VI,
4, Shopping Centre, Milan Cinema complex,
Karampura, New Delhi
Central Excise MOD-VII,
Rajendra Place, New Delhi