Applicability of service tax

This query is : Resolved

Jatin Shukla (Querist)
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11 February 2013 Dear Sir(s),

My query is regarding applicability of service tax in following situation

Facts of the case are

- Assessee is in to HR related consultancy services.
- She is running a proprietory firm.
- Invoicing is done under firm as well as Individual Name.
- She has Service Tax Registration No.for firm.
- She is filing Nil ST3 as her billing is not crossing Rs.10 Lakhs in earlier financial years as well for Apr.12-June 12 Qtr..
- During this financial year she has done billing of Rs.1 Lakh in her Individual Name and Billing of Rs.5 Lakhs in Proprietory firm name.
- Further she is going to raise Invoice of Rs.2 Lakhs before 31st March either under Propritory Firm Name or Indiviudal Name.
- As billing is not going to cross Rs.10 Lakhs this year she has not charged Service Tax on Billing of Rs.6 Lakhs done as well as planning not to charge it on additional billing of Rs.2 Lakhs to be done before 31.3.2013.

My Queries are

(1)As she doesn't have a Service Tax Number in Individual Capacity hence for Service Tax Chargebility Limit of Rs.10 Lakhs, Invoicing done under Individual Name and Firm Name taken together is to be considered or we can ignore Invoicing under Individual Name ?

(2) Is Service Tax needs to be charge on Invoicing done from 01/04/2012 till date i.e.on Rs.6 Lakhs ? As it is below Rs.10 Lakhs and not going to cross limit of Rs.10 Lakhs even after considering additional billing of Rs.2 Lakhs till 31/3/2013.

(3) A general query that for a New Assessee doing billing in Individual as well as Proprietory Firm name,Is it possible that we can get Registration Number only for firm or it needs to be in Individual Name ?

Also Registration needs to be done once billing cross Rs.9 Lakhs taken together i.e. billing in Individual + Firm name or we can ignore Individual Billing and get registration only for firm.

Waiting for experts reply at the earliest.

Thanking You.

pravin

pravin (Expert)
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11 February 2013 hi dear....

first of all clarified that if business is running under proprietorship than PAN number is not separate for proprietorship firm there are only PAN of owner / individual....however if PAN is in the name of individual than ST number issued on that PAN number only there for we can not claimed that proprietorship and individual are both required to register as separate ST or PAN registration....

if u issued bill in the name of proprietorship firm as well as individual than it considers as same person and calculate as aggregate bill of both....

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Jatin Shukla

Jatin Shukla (Querist)
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12 February 2013 Dear Sir,

Can you plz.clarify on query no.2 as assessee has ST No.but due to Invoice Amount not going to cross Rs.10 Lakhs this year she has not charged ST is it Ok or Ser.Tax needs to be collected once we have Service Tax Registration Number in one year due to crossing of threshold limits.

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pravin

pravin (Expert)
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12 February 2013 hi...
there are rules in service tax that if your taxable invoice / income above 9 lacs than u have to register within 30 days of 9 lacs cross limit....
moreover if your taxable billing going above 10 lacs than you have to collect service tax by issuing taxable bill on or above 10 lacs in any financial year....

ans. of your query no.2 is you are not liable to collect service tax or not issue taxable invoice or bill...