Eligiblity for payment.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2011 Sir,
I am ruuning UNINOR Store, GSM Service provider (Direct Channel Partner)in West Bengal. Last fiscal the company reimbursed me with 68000/- Service Tax amount.

Yesterday, I had gone to the Service Tax Deptt.to meet the concerned Officer of our area to clear off certain querries.

(1) Since last fiscal my Service Tax Aggregated to an ammount much below the stipulated eligibility value of 10 lacs as per the Service Tax Act & the budget passed this year, I wish not to pay the service Tax in the current fiscal 2011 - 12.
The Officer said that since you are dealing directly with a branded Company & geting Commission on dealings, YOU HAVE TO PAY & are bound to pay the Service Tax.
Sir, I very well know that I would not be able to cross the 10lac annual figure, so Sir under what section/ sub section & law under Service tax act is he (Service tax Officer) saying this.
Further Sir, If I do not pay the service Tax & neither do I claim the same from the company what will happen ?

(2) Will I be accountable to Penalty under Service tax act in the above case?

3)Can I surrender the Service tax certificate & still run the business & apply for the same in future when I find that my busineess Volume (commission) gets over 10lacs.

Please guide me on the above issue.

Regards.

xyz

U S Sharma

U S Sharma (Expert)
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17 August 2011 Branded services can not avail exemption of 10L.

as the service provider is UNIONR, you are only collecting agent of them, so you are eligible to pay ST on your commission only.

for more details look in to the agreement between you and uninor.