Company Registration & Approval Services

Service Tax Registration

Service tax is a kind of indirect tax levied on taxable services. Currently not all services are covered under the purview of service tax. Service Tax was first brought into force with effect from 1 July 1994. All service providers in India, except those in the state of Jammu and Kashmir, are required to pay a Service Tax in India. Initially only three services were brought under the net of service tax and the tax rate was 5%. Gradually more services came under the ambit of Service Tax. The rate of tax was increased from 5% to 8% w.e.f 14 May 2003. From 10 September 2004 the rate of Service Tax was enhanced to 10% from 8%. Besides this 2% education cess on the amount of Service Tax was also introduced. In the Union Budget of India for the year 2006-2007, service tax was increased from 10% to 12%. On February 24, 2009 in order to give relief to the industry reeling under the impact of economic recession, The rate of Service Tax was reduced from 12 per cent to 10 per cent.

The service sector has emerged as an important area of economic activity. Its share in the country’s Gross Domestic Product (GDP) has increased from about 28% in 1951, to over 50% as of now. The government decided to tax this important sector with the aim of raising resources and increasing the tax-GDP ratio.

Below are few categories which are taxable:
• Telephone
• Stockbroker
• General Insurance
• Advertising agencies
• Courier agencies
• Broadcasting
• Insurance auxiliary activity
• Banking and other financial services
• Port
• Authorised Service Stations
• Leased circuits Services
• Auxiliary services to life insurance
• Cargo handling
• Manpower recruitment Agency
• Mandap Keepers
• Architects
• Interior Decorators
• Management Consultants
• Practicing Chartered Accountants
• Practicing Company Secretaries
• Practicing Cost Accountants
• Real Estates Agents/Consultants
• Credit Rating Agencies
• Private Security Agencies
• Market Research Agencies
• Underwriters Agencies
• Scientific and technical consultancy services
• Photography
• Convention
• Telegraph
• Telex
• Consulting engineers
• Custom house agents
• Steamer agents
• Clearing & forwarding agents
• Air travel agents
• Tour operators
• Rent-a-Cab Operators
• Facsimile
• Online information and database access or retrieval
• Video-tape production
• Sound recording
• Storage and warehousing services
• Event Management
• Cable operators
• Beauty parlours
• Health and fitness centres
• Fashion designer
• Rail travel agents
• Dry cleaning services
• Commercial vocational institute, coaching centres and private tutorials
• Technical testing and analysis (excluding health & diagnostic testing) technical inspection and certification service
• Franchise Services
• Out door Caterer’s service
• Site preparation & clearance Services
• Dredging Services
• Survey & Mapmaking Services
• Cleaning Services
• Membership of Clubs & Associations
• Packaging Services
• Mailing list compilation & Mailing Services
• Airport Services
• Transport of Goods by Air Services
• Business Exhibition Services
• Intellectual Property Services
• Opinion Poll Services
• TV or Radio Programme Services
• Survey and Exploration of Minerals Services
• Travel Agent's Services other than Rail and Air travel agents
• Maintenance & repair services
• Commission and Installation Services
• Business auxiliary services, namely business promotion and Support services (excluding on information technology services)
• Internet cafe
• Forward Contract Services
• Transport of goods through pipe line or other conduit Service

The service tax is administered by the Central Excise Department. The government website www.exciseandservicetax.nic.in gives the details of the jurisdictional offices of the Central Excise Department, State-wise, District-wise as well as Commissioner rate-wise.

For assistance on Service Tax Registration please click here

VAT/TIN No Registration

Value added tax (VAT) is tax on exchanges. It is levied on the added value that results from each exchange. It differs from a sales tax because a sales tax is levied on the total value of the exchange. For this reason, a VAT is neutral with respect to the number of passages that there are between the producer and the final consumer. A VAT is an indirect tax, in that the tax is collected from someone who does not bear the entire cost of the tax. To avoid double taxation on final consumption, exports (which by definition, are consumed abroad) are usually not subject to VAT and VAT charged under such circumstances is usually refundable.

For assistance on VAT/TIN No Registration please click here

Import Export Code (IEC) Number

The Importer Exporter Code, or IEC in short, is normally required by manufacturers and companies for international trade but with this new RBI ruling, the hundreds and thousands of freelancers, programmers, web designers and small companies who depend on PayPal for foreign payment will also have to apply for an IE code.
IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade, Ministry of Commerce, and Government of India to the Companies. No person or entity shall make any Import or Export without IEC Code Number.
An application for grant of IEC number shall be made by the Registered/Head Office of the applicant and apply to the nearest Regional Authority of Directorate General Foreign Trade. Only one IEC is issued against a single PAN number.

The importer/exporter categories that are exempted from obtaining IEC code are :

1. Importers under the clause 3(1) and exporters under the clause 3(2).
2. Central/state government ministries/depts.
3. Persons involved in import and export of personal goods.
4. Persons involved in the import/export of goods from or to Nepal in case a consignment CIF value remains below Rs. 25,000.
5. Persons involved in the import/export of goods from or to Myanmar in case a consignment CIF value remains below Rs. 25,000.

Specific code numbers have been allotted to be used by different categories of importers and exporters.

S.No	Code Number	Categories of Importers/ Exporters
1	0100000011	All Ministries/Departments of the Central Government and agencies wholly or partially owned by them.
2	0100000029	All Ministries/Departments of the State Government and agencies wholly or partially owned by them.
3	0100000037	Diplomatic personnel, Counselor officers in India and the officials of the UNO and its specialised agencies.
4	0100000045	Indians returning from/going abroad and claiming benefit under the Baggage Rules.
5	0100000053	Persons/ Institutions/ Hospitals importing or exporting goods for personnel use, not connected with trade or manufacture or agriculture.
6	0100000061	Persons importing/ exporting goods from/to Nepal provided the CIF value of a single consignment does not exceed Indian Rupees 25000/-.
7	0100000070	Persons importing/ exporting goods from/to Myanmar through Indo- Myanmar border areas provided the CIF value of a single consignment does not exceed Indian Rupees 25000/-.
8	0100000088	Ford Foundation
9	0100000096	Importers importing goods for display or use in fairs/exhibitions or similar events under the provisions of ATA carnet.
10	0100000100	Director, National Blood Group Reference Laboratory, Bombay or their authorized offices.
11	0100000126	Individuals/Charitable Institutions/ Registered NGOs importing goods, which have been exempted from Customs duty under the Notification issued by Ministry of Finance for bonafide use by the victims affected by natural calamity.
12	0100000134	Persons importing / exporting permissible goods as notified from time to time, from/to China through Gunji and Namgaya Shipkila ports, provided the CIF value of a single consignment does not exceed Indian Rs.25,000. In case of Nathula port, the applicable value ceiling will be Rs.100,000.
13	0100000142	Ordinance factories under the Ordinance Factories Organisation.
14	0100000151	[Old- The Directorate of Purchase and Stores, Department of Atomic Energy,Government of India.]
15	0100000169	Non-commercial imports and exports by entities who have been authorized by Reserve Bank of India.

For assistance on Import Export Code (IEC) Number Registration please click here