Payment of Service Tax

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Saif Ali (Querist)
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13 January 2010 Hello People,
I am a first time entreprenuer based in Hyderabad. I am opening a private limited comapany with 2 directors. We will be in the business of a gaming cafe where there will be video games and snacks. I have the following queries -
1. My annual turnover is expected to be around 8 lakhs pa, which doesnt come under the purview of service tax. So should i still register myself under service tax or should i wait till the company has a turnover exceeding Rs. 9 lakhs?

2. I am aware i will have to pay VAT on the food and beverage sold in the cafe. I am expecting a sale of Rs. 3 lakhs pa from it. So my question is how am i supposed to pay the VAT on this sale? And when should i register myself with the VAT authority?

3. As a private limited comapny and based on the nature of my business, is there any other regulation under which i should register my business?

I would be very thankful if these doubts of mine can be cleared by the experts panels.

Thanks & Regards
Saif Ali

Rajesh Kumar

Rajesh Kumar (Expert)
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13 January 2010 On the face of it, the activity is not covered under service tax.
If service tax is to be paid, registration should be taken when the turnover reaches 9 lakhs.