It is an indirect tax wherein the service provider collects the tax on services from service receiver and pays the same to government of India. Service Tax Application is mandatory for anyone involved in the service industry. Service tax applies only to services sold within India Service tax is an indirect tax levied on a wide array of services specified by the Central Government under the Finance Act, 1994 Service tax applies only to services sold within Service Tax registration is mandatory for every person or business in India that has provided a taxable service of value exceeding Rs.9 lakhs, in the previous financial year Service Tax must be collected when your revenues are Rs. 10 lakh or over. Service Tax is to be paid to government via designated branches once every quarter by LLPs, partnerships and sole proprietors and once every month by all other entities.