ONLINE SERVICE TAX REGISTRATION

1.       There are Two Types of Registrations:

a.       Registration with ACES (Automation of Central Excise and Service Tax) and

b.      Registration with the Department as Assessee by filing Form ST-1 after registered with ACES  

2.       The On-line Registration for assessee is available for:

a.       Existing Assessee

b.      New Assessee

c.       LTU Assessee

d.      Non-Assessee

3.       The following steps to be followed by New Assessee for registration.

a.       The User is required to visit website www.aces.gov.in

Figure 1. ACES Home Page

               

b.      In the homepage, User selects Services Tax option and get login screen.
  

Figure 2. Screen for Login to ACES

c.       The users is required to Select the hyperlink “New Users to Click Here to Register with ACES” to go for Creation of User Name. The Registration screen with ACES will appear as below:

Figure 3. Registration with ACES Screen

This Screen enables creation of User Name (ID) & Password (given by the User) after entry of valid E-mail ID and other basic details of the person registering with the ACES Application. Thos may be noted that User ID once selected is Permanent, Password should be changed regularly

d.      The Assessee receives an e-acknowledgement as below:

Figure 4. E-acknowledgement for registration with ACES

                                                                                       

4.     Once registered with ACES Application, the assessee goes to ACES website  and clicks on Service Tax link and fills in the user name & password to log in to the Application

5.      Select REG Module -> Option Fill Form ST-1 as below:

Figure 5. Screen of Assessee Homepage

Figure 6. First Page with filled data of the ST1 registration form

Figure 7. Second Page of the ST1 registration form

Figure 8. Third Page for the ST1 registration form

Figure 9. Last Page of the ST1 registration form

Figure 10. The Response screen after the submission of the ST1 form

6.     This will enable Online filing of Application Form for Registration with Department




Vishal Jalan
Chartered Accountant

SERVICE TAX BASICS

1. Service Tax is an Indirect Tax. There is no separate act called Service Tax Act. The provisions to levy tax on services are contained in the Financial Act, 1994.

2. Based on the recommendation of the Tax Reforms Committee headed by Dr. Raja J. Chelliah, Service Tax was introduced for the first time in 1994 by the 10th Finance Minister Dr. Manmohan Singh.

3. The levy on taxable service was notified on 1st July 1994. Initially three services were identified and taxed. They were telephone, Stock Broking and General Insurance. The Government of India is following the selective approach while taxing services. It means all services are not taxed and services that are to be taxed are identified separately and brought to tax.

4. The Central Government is empowered to levy tax under Entry No: 82 to 92C. Accordingly Entry No: 92C deals with taxes on services. Article 268A of the constitution contains that taxes on services shall be levied by the Government of India and such tax shall be collected and appropriated by the Government of India and the state in India. Hence the Central Government alone is empowered to levy tax on services in India.

5. The legislations relating to service tax are the

1. Finance Act, 1994
2. The Service Tax Rules, 1994
3. Notifications issued by CBEC
4. Circulars issued by CBEC
5. CENVAT Credit Rules, 2004.

6. The Service Tax Law is administrated by the CBEC. To assist and Co-ordinate in the administration, a separate Directorate by name Director General of Service Tax has been formed with Head Quarters at Mumbai. The Directorate of Service Tax coordinates between the CBEC and the Central Excise Commissionerates. It also monitors the collection and assessment of Service Tax. The Service Tax reports received from various commissionerates are combined by the Directorate to monitor the performance.

Vishal Jalan

Chartered Accountant