Registration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2013 Dear Sir,
One of my client's annual receipts from brokerage would be about 6 to 7 lacs, however he has obtain service tax registration. In this regard I have following query -

1. Whether he has been liable to pay service tax even his turn over is below 10 lacs.

Aashish Tiwari

Aashish Tiwari (Expert)
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14 July 2013 No, he is nt liable to pay untill the turnover exceed the specified limit. (10 lac).

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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14 July 2013 Once he exceeds rs 10,00,000from such source then only he is liable to pay ser tax.

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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14 July 2013 There is might be a doubt in other experts mind, in that case assessee has voluntary/ already opted for Registration under Service Tax. Therefore its compulsory to assessee to charge/pay service tax

Note Rs. 10,00,000 exemption is only for registration

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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14 July 2013 No its 9lakhs for reg and not 10laks.

if it exceeds 10lakhs then liable to pay service tax

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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14 July 2013
tushar you are correct for first year only, however the query is not clear whether 6-7 lacs of turnover is for 1st year turnover or it subsequent years turnover. and if in subsequent year whether the turnover is exceeds Rs. 10 any time during any previous financial year is also not specify.

Therefore after getting registered under service tax one may can assume assessee has to pay service tax if turnover exceeds Rs. 10 lacs in any previous year

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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14 July 2013 YES FROM 2ND YEAR whether it crosses 10 lakhs or not he is liable to tax on very income earned by providing such service.

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2013 Actually assessee's receipts neither in past nor in future will cross the limit of 10 lacs, they will remain below 10 lacs but he want to maintain registration. Thus in the above case whether he is liable to pay service tax or not while filing returns .

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Aashish Tiwari

Aashish Tiwari (Expert)
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14 July 2013 No, there is no liability to pay S.T... take a treats frm ur client..