Query regarding Service Tax Registration.

This query is : Resolved

Guest

Guest (Querist)

08 September 2010 ABC Enterprises is a partnership firm engaged in the business of courier service.

Firm was formed in August 2009.

Firm has a turnover of approx. Rs.80000/- as on date.

Firm now proposes to have Service Tax Registration.

Query

How the Firm can have ST Registration ?

That is, First Firm should complete the ACES formalities and get the PAN based STC number and then, it is required to pay Service Tax for the said turnover.

Ans : ...................

Whether the Firm can continue without obtaining Service Tax Registration and after exceeding the Exemption Limit, shall obtain Service Tax Registration.

Ans : ...................

Please advise how to fulfill the requirement and proceed further on the matter.

I shall await the Experts' Views.

Sheetal Metha

Sheetal Metha (Expert)
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08 September 2010 Firm should apply for the Service Tax Registration Number with ACES.

And Firm have to collect Service Tax on turnover above exemption limit and to be deposited in bank before on the due date.

If Turnover remains under the exemption limit then Firm has to file Nil Returns of Service Tax

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 September 2010 Actual registration requirement will come only the firm cross the turnover Rs.9 lakhs,

So either firm can go voluntary registration and claim the basic exemption or wait up to the turnover cross the limit

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Guest

Guest (Querist)

08 September 2010 Hi Friend(s),

Thank you for your responses.

* * * *

My Query Contd.

The Firm does not want to avail the exemption.

The Firm wants to go for voluntary registration.

Query :

Whether the Firm can go for voluntary registration ignoring the existing turnover of about Rs.80000/-.

(Is it acceptable by the Service Tax Department of such registrations)

I may request you to see and respond suitably so that I shall proceed further.

Thanks.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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08 September 2010 Not a problem, the firm can go for registration, basic exemption is option for service provider, whether taking or not taking is service provider choice, Department will accept the registration

Guest

Guest (Querist)

10 September 2010 Hi Friend,

Once again, thank you.

In fact, I have been informed by the Service Tax Official that as the Firm is serving for a branded courier (say First Flight Courier), the Firm is supposed to pay Service Tax for it's entire turnover and may apply for voluntary Service Tax Registration.

Please clarify, if possible, whether the STO's advise is right and in order.

Friend, I shall wait for your further advise.

Thanks.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 September 2010 Hi

yes, the STO`s advise is correct, as per notification no.6/2005/ST- DT:1.3.2005, which is dealing the thershold exemption specifically excludes the service providers using the Brand name of others, so you are using the First flight brand name, you are not eligible for claim basic exemption limit,so total turover taxable

Guest

Guest (Querist)

10 September 2010 Hi Friend,

Thank you so much for giving me clarity on the above mentioned queries.

Friendly yours,
D.KARTHIKEYAN.

Note : Friend, sorry to bother you.

May I request the following cases by e-mail (deekarthik@gmail.com) if possible :

1.Speed & Safe courier service vs CCE (2008)13 STT 257 (Bangalore, CESTAT)

2.French Express Network p ltd vs CST (2008)16 STT 10 (Chennai CESTAT)

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 September 2010 Since I am having hard copy only , I need to scan and send. sorry for the delay. I will be sending by one or two days. sorry again

Message likes : 1 times

Guest

Guest (Querist)

10 September 2010 Hi Friend,

You have been educating me a lot.

Never use 'Sorry' especially to me.

Please take your own time and do help me, as you would be doing me always.

Thank you for your immediate response.

Friendly yours,
D.KARTHIKEYAN.