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Service Tax Return

FILING SERVICE TAX RETURNS

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.

FEATURES OF SERVICE TAX

  • Small scale service providers are exempted from Service tax registration that provides service of less than Rs. 10 Lacs in a year.
  • Service tax registration is deemed to be guaranteed if registration of service tax is not issued within 7 days, after filing of form ST1 along with the relevant documents.
  • Service tax is not applicable for services exported from India.
  • Service tax return is filed twice a year. Return is required to be filed by 25th October and 25th April respectively for half-year ending 30th September and 31st march.

Knowledge-base

  • Service tax will be levied at a Flat rate of 14% on the amount.
  • To obtain service tax registration, a copy of PAN Card, proof of address of business and constitution of the business [Partnership deed, Incorporation Certificate, etc.,] is required.
  • Service return payments must be deposited by Companies, Societies, Trust, etc., monthly. Proprietary Firms and Partnership Firms are required to make service return payments quarterly.
  • Failure to apply would result in penalties of Rs. 5,000 or Rs. 200 a day, whichever is higher.
  • Service Returns are filed half-yearly. Returns are to be filed twice a year on 25th October and 25th April for the half-year ending September and March respectively.
  • All persons or entities liable to pay this tax or having service tax registration must file service tax return.
  • The fine is Rs. 500 if the delay is up to 15 days, Rs. 1000 if the delay is up to 30 days and an additional Rs. 100 per day thereon, subject to a maximum of Rs. 20,000.

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