Whether service tax charged or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2015 Dear Sir,
jab turnover 10 lakh se jyada ho tab service tax applicable ho jata h..mai yamaha bikes ka authorized dealer hu..hamare yaha sales, service,spares tino h..hmlog abhi tak service tax ka registration nai liye because labour charges ka turnover 10 lakh se jyada nai hua h.& customer se service tax bhi charge nai karte h..

But ek CA sir ne kaha ki aap ek branded goods sell kar rhe ho..u treat as a franchise..& is case me turnover ka exemption applicable nai h..aapko service tax registration karana hoga & labour charge & service charges par service tax lena hoga..

Please clear hamare yaha service tax applicable hoga ya nai..urgent basis.

CA Amit K. Ganar

CA Amit K. Ganar (Expert)
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22 April 2015 It is true that service tax exemption is not allowed to a person providing service under brand name or trade name of other.
Please refer exemption notification of Rs.10L

1. Exemption to Small Scale Service Providers:
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994 (hereinafter referred to as the said Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services of aggregate value not exceeding Ten lakh* rupees in any financial year from the whole of the service tax leviable thereon under section 66 of the said Finance Act:
Provided that nothing contained in this notification shall apply to,-
(i) taxable services provided by a person under a brand name or trade name, whether registered or not, of another person;

Explanation.- For the purposes of this notification,-
(A) “brand name” or “trade name” means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram,logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person;

NOW IT IS DEPENDANT ON YOUR AGREEMENT WITH THE DISTRIBUTOR WHAT THE TERMS AND CONDITIONS MENTIONED IN THAT.

IF THE LANGUAGE CONFIRM & SATISFY ABOVE MENTIONED CONDITIONS THEN SERVICE TAX IS APPLICABLE. YOU ALSO HAVE TO PAY SERVICE TAX OF SERVICES PROVIDED FROM DATE OF COMMENCEMENT.

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2015 thank you very much sir for your reply..

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