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Compliance Fact Sheet

  • Small service providers who provided services less than Rs. 10 lakhs in a year are exempt from Service Tax and need not register under Service Tax.
  • Service Tax can be paid online through any designated bank.
  • Proprietorship and Partnership Firms are required to pay Service Tax on quarterly basis whereas Private Limited, Limited Companies, Trusts etc have to deposit Service Tax on monthly basis.
  • If during the previous year a service provider has provided services worth Rs. 9 lakhs, he has to register himself under Service Tax. Non registration attracts penalty.
  • Service Tax returns are to be furnished twice a year. For the half year ending 30th September, the due date of filing Service Tax return is 25th October and for the second half ending 31st March, the due date of filing Service Tax return is 25th April.
  • After application of Service Tax number in form ST 1, if registration certificate is not issued by the Service Tax department within seven days, Service Tax registration is deemed to be granted. This means that after application in form ST 1, the entity has to pay Service Tax even if the registration certificate is not received.
  • There are some services where the liability to pay Service Tax is on the receiver of service. This is called Reverse Charge Mechanism. Insurance Agent, Legal Services, Goods Transport, Manpower Supply, Import of Taxable Service etc are few examples where reverse charge mechanism apply.
  • There is no threshold exemption of Rs. 10 lakhs on Reverse Charge Mechanism. The Service Tax is payable from very first invoice.