Service tax is exactly an indirect tax, that is charged on an extensive ways of services particularly by the Central Government under the Finance Act, 1994. The service provider reimburses the tax and get back the amount from its consumers.
The service provider should be registered with the Central Government if the prior financial year's income is over Rs. 9 lakh. Though, collection should begin, at the fee of 15%, only when the earnings of the business go above Rs. 10 lakh. Once service tax is pull together, just for only a month, the service provider should persist to gather service tax, in spite of of whether revenues go down below Rs. 10 lakh every year. Service Tax must to be remunerated to the central government through selected branches or online once every quarter by LLPs, partnerships and sole proprietors and one time every month by all other units. Service tax returns should also be registered two times per year.
Service tax, valid at 15%, is to be remunerated by the recepient of the service. Thus, it's the customer who pays this indirect tax. The tax is assembled by the service provider and then reimbursed the amount to the government. Only those service providers providing any of the services on the off-putting list or with a revenue of less than Rs. 10 lakh are let off from collecting service tax.
A service tax registration can be acquired just within 10 to 20 days. If it is not approved within this time period, it is considered to have been approved. Then it will take another 10 to 15 working days, that is only depending on the appropriate documents.