Registration is identification of an assessee which is necessary to deposit service tax, file returns and undertake various processes ordained by law relating to service tax. The basic exemption under service tax laws (read Finance Act 1994 ) is up to Rs 10 lakhs . However, in terms of Section 69 of the Finance Act,1994 (Chapter V) read with rule 4 of the Service Tax Rules,1994 , it is provided that
Every person who has provided a taxable service of value exceeding Rs. 9 lakhs, in the preceding financial year, is required to register with the Central Excise or Service Tax office having jurisdiction over the premises or office of such service provider.
A recipient has to obtain registration if he is liable to pay service tax , he also. If you are wondering how recipient can be held responsible for paying service tax , please read Who is liable to pay – service provider or receiver of service?
The ‘Input Service Distributors’ are also required to register them as per Notification. No.26/2005-ST dated 07.06.2005 as amended.