+91 8800565222
or Email Us query@efinancialfirst.com
You Are Here - Home > Service Tax

Service Tax

About Service Tax

Service Tax is an indirect tax levy imposed under Chapter V of the Finance Act, 1994 as amended. The tax is applicable to services specified in the Section 65 & 66". The service provider collects the tax from consumer of service (recipient of service) and pays the same to the government. Service tax is charged on the gross value of services and is generally payable on receipt basis. It is charged on all services except the services in the negative list of services.

Applicability of Service Tax

Earlier the service tax was applicable to only on the specified list of services, but as per the revised budget on 16.03.2012, t is being declared that from 01.07.2012, the service tax will be applicable to every kind of service except the services listed in negative list provided by the government.

Negative List

Service tax is liveable to all services provided in the taxable territory by a person to another for a consideration other than the services specified in the negative list as per Section 66B of the Act. The services specified in the negative list therefore go out of the ambit of chargeability of service tax. The negative list of service is specified in the Act itself in Section 66D. In all, there are seventeen heads of services that have been specified in the negative list.

  • Services provided by Government or local authority.
  • Services provided by Reserve Bank of India.
  • Services by a foreign diplomatic mission located in India.
  • Services relating to agriculture or agricultural produce.
  • Trading of goods.
  • Processes amounting to manufacture or production of goods.
  • Selling of space or time slots for advertisements other than advertisements broadcast by radio or television.
  • Access to a road or a bridge on payment of toll charges.
  • Betting, gambling or lottery.
  • Entry to Entertainment Events and Access to Amusement Facilities.
  • Transmission or distribution of electricity.
  • Specified services relating to education.
  • Services by way of renting of residential dwelling for use as residence.
  • Financial activity.
  • Services relating to transportation of passengers.
  • Service relating to transportation of goods.
  • Funeral, burial, crematorium or mortuary services including transportation of the deceased.
Documents Required for Registration of Service Tax (all the documents should be self attested)
  • PAN card & address proof of proprietor/ partner/ director.
  • Passport size photograph (2), of proprietor/ partner/ director.
  • Rent agreement, sales deed, and lease deed of business premises, if rented.
  • Partnership deed/ LLP agreement in case of firm/ LLP.
  • MOA & AOA copy, board resolution and authorizing letter in case of company.
  • PAN card & address proof (along with electricity bill) of proprietorship firm/ partnership firm/ company.
  • Cancelled cheque of business bank A/C.
Service Tax Rates
Period Rate
From To 5%
01.07.1994 13.05.2003 8%
14.05.2003 09.09.2004 10.20% (ST+EC)
10.09.2004 17.04.2006 12.24% (ST+EC)
18.04.2006 10.05.2007 12.36% (ST+EC+SHEC)
11.05.2007 24.02.2009 10.30% (ST+EC+SHEC)
24.02.2009 31.03.2012 12.36% (ST+EC+SHEC)
01.04.2012 onwards
12.36% (ST+EC+SHEC)

Charges for registration in Service Tax (inclusive of govt. fee, our professional fee & out of pocket expenses) Rs. 3,500/-