Registration

[mayank chopra]

Who all are not required to get registered under Finance Act, 1994 (Service Tax) ? Are there any specified category which are not required to get registered? e.g. a company is from the very beginning of its incorporation is rendering services which are covered under export of services, so is that company required to get registered, if yes, then under what provisions?

[rishi mohan]

Section 93(1) of the Finance Act, 1994, the Central Government grants exemption from payment of Service Tax, the Central Government has granted partial/full exemption to number of services. Some of these major exemptions are:-

 

(a) Services provided to the United Nations or an International Organization declared by the Central Government

 

(b) Services provided to a developer of Special Economic Zone or to a unit of Special

Economic Zone which satisfy certain prescribed conditions.

 

(c) In exercise of the powers conferred by sub-section (1) of section 93 of the Finance

Act, 1994 (32 of 1994) (hereinafter referred to as the said Finance Act), the Central

Government, on being satisfied that it is necessary in the public interest so to do,

hereby exempts taxable services of aggregate value not exceeding ten lakh rupees in

any financial year from the whole of the service tax leviable thereon under section 66 of

the said Finance Act:

 

Export of Services-As per Rule 4 of the Export of Services Rules, 2005, all taxable services are exportable without payment of Service tax.

AI Summary

Service tax exemptions: specified recipients and exported services may be exempt from registration or payment under service tax rules. Exemptions under section 93(1) of the Finance Act, 1994 cover services to the United Nations or designated international organizations, services to SEZ developers or units meeting prescribed conditions, and services below a small-amount annual aggregate threshold exempted from service tax; additionally, Rule 4 of the Export of Services Rules, 2005 treats qualifying taxable services as exportable without payment of service tax.