Service tax is an indirect tax which is levied on the services provided by a service provider in India. It is a tax that the service provider pays and later recovers the same from the service recipient of the taxable services.
Service Tax Registration is compulsory for all service providers with a turnover of over Rs. 9 Lakh. Failure to apply would result in penalties of Rs. 5,000 or Rs. 200 per day, whichever is higher.
If you have a Service Tax Registration, you need to file your returns by October 25th (for April to September) and by April 25 (for October to March), even if you don’t have any revenues. All your Service tax dues are required to be cleared before this filing. Penalties would be levied if there is any failure to pay tax returns by the due date.
Value Added Tax (VAT) Registration or Taxpayer Identification Number (TIN) Registration is a tax registration required for business trading or manufacturing goods in India. Any business entity engaged in the sale of goods in India with the turnover of over Rs. 5 Lacs is mandatory to register Sales Tax. VAT is collected and represented by the state government, so every state government in India has distinct guidelines applicable for their state based on the type of goods manufactured or sold.
After registration of VAT, the producer or dealer is allotted a unique 11 digit number which will serve as the TIN Number for the business.
If you are a registered dealer, you must file VAT returns. Payment of tax has to be done before the filing of returns. E-filing of VAT returns is permitted in various states across India.
Business Formation, Routine Compliances, Financial, Secretarial, Direct & Indirect Taxation