Friends,
When we use any service be it a phone bill payment or Hire a room in a hotel we have to pay out little more than the actual rates charged. Ever wondered why? The reason is very meek, we are made to pay service tax over and above the usual charge but the bigger question is What is Service Tax, why do we have to pay this Tax when the tax is applicable on the company providing the service and also what is the Service Tax Rate. If these questions bother you, find answers below.
What is Service Tax?
It is a tax which is payable on services provided by the service provider. Just like Excise duty is payable on goods which are manufactured, similarly Service Tax is payable on Services provided. This Tax is payable by the provider of Service to the Govt. of India. However, the Service Provider can collect this Tax from the Consumer of Service (also referred to as Recipient of Service) and deposit the same with the Govt.
Modifications :
1. New Registrants: In terms of Notification No 48/2012 dated 30.11.12 , Service Tax Registration Application Form (ST-1) has been modified and is available in ACES for use by the new applicants seeking registration as a Service Tax assessee. Earlier, vide Notification No 19/2012 dated 5.6.12 effective from 01.07.2012,the negative list of services was introduced and accordingly, applicants seeking registration as a Service Tax assessee were required to register under the service category 'All Taxable Services Other than in the Negative List' . In terms of the Circular No165/16/2012 ST dated 20-11-2012 , issued by CBEC, the pre-July system of service-wise registration has been restored by CBEC for statistical purposes only. New applicants are now required to indicate the service(s) from out of the 120 categories listed in the aforesaid Circular. Further, Service-wise Accounting Codes have also been allotted for payment of tax, other receipt-interest and penalty. Henceforth, the Service Tax Registration Certificate (ST 2) will display the list of services for which the assessee is registered along with the new Accounting Codes.
2. Existing registrants: Those assessees, who had registered with the department after 01.07.2012 under the 'Other than in the Negative List' (OTNL) category should amend the taxable service details now and opt for relevant description/s from the list of 120 services. After approval by the departmental officer, a new Registration Certificate(ST2) will be issued online displaying the list of services chosen by the assessee along with the new Accounting Codes. The existing registration number will, however, remain unchanged.
3. Pending amendment applications: Applications which have been filed and are pending for changing the description of services to OTNL category will be rejected by the departmental officers in view of the above mentioned circular. However, if the assessee has added or dropped any service, he should file amendment application to add/delete the relevant service.
4. If you need further clarification, please contact ACES Service Desk by sending e-mail to aces.servicedesk@icegate.gov.in or calling up national toll-free number 1800 425 4251 on any working day from Monday to Friday between 9 AM and 7 PM.
