27 May 2014
a person is registred under punjab vat act doing outdoor catring . His turn over is less than 9 lac . According to rules he has to split his turn over in 60-40 ratio to pay punjab vat and service tax .
my question is : In a newly established business having turnover below basic exemption limit as per service tax i.e 10 lac ,can a person still claim the basic exemption and can he pay vat on 60% only in punjab & leave the 40% of service tax portion until he is liable for service tax registration
27 May 2014
As per notfication numbr 33/2012,till the aggregate value of taxable service exceeds 10 lakhs,there is no need to pay service tax.
Also as per rules service portion in case of outdor catering is 60%. As per my view there is no liability to pay service tax. But VAT shall be charged on the whole bill value not on just 40%.
27 May 2014
if he has to pay vat on whole amount then to get registration under service tax he has to take account of the ratio of 60% of the bill amount or he has to see its actual services provided ?
CAclubindia
