It is an indirect tax wherein the service provider collects tax on services from service receiver and pays the same to the Government of India. It is required for businesses providing services in India.

FEATURES OF SERVICE TAX

• Small scale service providers who provide services of less than Rs 10 lakhs in a year are exempted from Service Tax Registration.
• If registration is not issued within 7 days of the filing of form ST1 along with the relevant documents then registration is deemed to be guaranteed.
• Its return is filed twice in a year. 25th October is the due date of filing return for half year ending 30th September and 25th April is the due date for filing return for half year ending 31st march.