Registration requirement

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2012 Consultancy receipt 90000 p.m.
Conveyance 20000 p.m.
Total 110000 p.m.
Are we liable for registration?

aadish

aadish (Expert)
Follow

14 December 2012 As per finance act 1994, registeration under service tax limit is 9 lac p.a, and service tax shall be payable when service tax receipts exceeds 10 lacs..

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2012 Ok. Will Conveyance expenses be added for the purposes of ascertaining 9 lac?

and will the service provider charge service tax on both the consultancy and conveyance mentioned in the contract

Upgrade to CAclubindia Pro. Subscribe Now!

aadish

aadish (Expert)
Follow

14 December 2012 Conveyance expenses shall not be added while ascertaining 9 lacs limit, however as per rule5(1) of determination of value rules provides to consider conveyance expenses i.e reimbursable part for service tax, but as per latest judgment of delhi high court in intercontinental technocrats came on 30th NOV 2012, quashed this rule, i.e service tax should not be levied on reimbursable part. however its only high court judgement which deptt can take it in supreme court, So for the time being it should be considered for 9 lac limit and service tax should be levied on the same, bt at the same time u have the option, if deptt give u notices then , it will be taken care by Supreme court.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2012 Is the service tax liability on both the consultancy and conveyance

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2012 Actually the conveyance is not for reimbusable expenses. It is there in the contract only (Fixed), then is there any change of opinion

visu iyer

visu iyer (Expert)
Follow

14 December 2012 All reimbursiable expenses are not taxable as per the recent High court judgement
INTERCONTINENTAL CONSULTANTS AND TECHNORATS PVT. LTD.

relax and cool by paying service tax on consultancy charges.!!

aadish

aadish (Expert)
Follow

15 December 2012 relax n cool by paying service tax on consultancy charges, if they are fixed then, as per general opinion it shall be included in professional charges for paying service tax bcz that means it is not for reimbursable expenses.(if fixed amount), bt if contract specifies for reimburment of expenses then excluded for the service tax purpose.

Upgrade to CAclubindia Pro. Subscribe Now!