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Service Tax Registration

Jyoti Malik (ACCOUNTANT) (2644 Points)

20 October 2009

WE ARE REGISTERED WITH SERVICE TAX AUTHORITIES AS SERVICE PROVIDER NOW WE ARE TAKING SERVICES FROM FOREIGN COMPANY. WHAT WE SHOULD DO FOR PAYING SERVICE TAX ON THEIR BEHALF. WE HAVE TO TAKE A NEW REGISTRATION AS SERVICE RECEIPIENT OR AMEND OUR OLD RC.

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5 Replies

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14497 Points)
Replied 20 October 2009

Q: In case of a registered service provider, providing a new taxable service, is he required to obtain a fresh registration?
A: Service tax registration needs to be obtained for each taxable service category. In case a service provider already has a service tax registration certificate, the service provider would need to get the service tax registration certificate amended for the addition of the new taxable service category in the certificate.

Q: Is there any prescribed period for intimation of change in information at the time of registration?
A: The service provider is required to intimate any change in information submitted to the Central Excise Officer at the time of registration within 30 days of the said change.

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(Guest)

Person liable to pay service tax

Service tax is payable by service provider. In few cases, tax is payable by service receiver, under reverse charge method [Section 68(2)].

Import of service

	In case of import of service, tax is payable by recipient of services under method of ‘reverse charge’. Tax should be paid by cash i.e. GAR-7 challan and then Cenvat credit can be availed as it is his input service.
	Tax is payable only when service is received in India.
	To determine the issue whether a provision of service is ‘import of service’, services have been classified in three categories. Criteria for each category has been specified e.g. immovable property India, service performed in India, recipient is located in India.

-3 Person liable to pay Service tax

In most of the cases, service provider, i.e. person who is providing taxable service is liable to pay service tax. However, in few cases, exceptions have been made and service receiver is made liable to pay service tax. The provision that service receiver is liable to pay service tax is termed as ‘Reverse Charge’.

(Guest)

In simple words the person/company who is receiving service from foreign is regarded as Service provider and not as service receiver.So the method for payment of tax will be same as of service provider.