Renting of immovable Property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2010 Sir,

I am renting immovable property for commercial purpose.

As per the service tax rule when the amount recd. exceeds Rs. 9 lakhs we have to apply for service tax registration no. And after exceeding Rs. 10 lakhs we have to charge service tax.

In my case upto Feb-10. I have received Rs. 9.45 lakhs & in the month of Mar-10. I recd Rs. 1.05 lakhs. It means In the month of February-10. I have to apply for Service tax registration & In the month of Mar-10. I have to charge service tax on Rs. 50000/=.

But unfortunately I forgot to take service tax registration and also charge service tax.

Now I am going to apply for service tax registration & will charge service tax from April-10. bills.

Now my querry is that
1.) For the delay of Service tax registration and for not charging of Service tax in the month of Mar-10 whether I have to pay fine & Interest? If yes how much? whether I have to pay it before or after mistake point out by the department.

2.) When I will apply for service tax registration in April-10. Can I pay service tax for March-10.

Please guide me urgently.

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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02 April 2010 In your case the liability attracts on the whole amount of turnover even if you have not collected service tax from customers.

You have to consult with experts immediately to think upon the otion available.

You should immediate apply for the registration for the current year.

Regards
K.L.Paliwal