4 Reasons why you must apply for Service tax right now
by Paras Mehra 2.74K
Introduction
We are standing on a verge of Indian taxation which is about to take a paradigm shift in indirect taxation in the country. GST is knocking doors and all other taxes like service tax, VAT, excise, etc., will subsume into GST. Once GST is introduced, every dealer, service provider, etc. will have to apply for GST registration, and that will be very handy in the beginning.
But, don’t worry we have got the solution for you. Here are five reasons why you should register for Service Tax right now:
1. Automatic Registration under GST: If you are already registered under service tax, VAT or excise, then GST registration will automatically be granted to you. The tax authorities will issue you the registration certificate which shall be valid for six months.
Further, after submitting the information as required by the authorities, the authorities will issue you the final registration copy. You can say it as a Hack in technical terms, but this is what a need of an hour is. If you are not registered yet and planning to do business, then go and register for service tax to get automatic recognition under GST.
2. Save Cost and Time both: GST registration will be done through a common portal of GST. Since it is a new act; consultants will charge you more for this registration because in the beginning, it will have many flaws which will be time-consuming and will initially take months to settle.
Hence to avoid these legal nuisances, register now for Service tax and use the benefit of provisional registration.
3. Service tax – Easy to Register – Lesser to comply: Easy to register with least compliances is what define service tax. There is a myth in the industry that if you get the Service tax registration, then it is mandatory to pay service tax.
However, it is only a myth, even if you are registered under service tax; it doesn’t mean that you are liable to pay service tax. Service is exempt up to the turnover of 10 lakh.
4. Avoid the Rush for Registration: Once GST will be introduced, every person will rush towards the registration even the existing dealers. Further, it is very well expected that the registration will be complicated in the beginning, and the process will initially take months to settle down
Hence, to continue the work without any hassle, one should register under service tax and use the benefit of automatic registration.
The Conclusion
GST is on the doorstep and one of the most awaited amendments. We all welcome it, but initially, it will create a fuss and to avoid that early fuss, the Service tax registration is the best way out.
In a case of any doubt, you can drop your query to our contact form.