service tax on brokrage.

This query is : Resolved

Neetinkumar Vora (Querist)
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15 June 2011 Dear Sir,
I am a property broker.i want to know that when iam liable to charge my clients service tax?some body tell me that you shoud get first service tax number then only you can charge and that is also after complition of brokrage of Rs.10lacswithin one calender year.is it right?what is the rule and what are the procedures?please help me.thanking you!
neetin vora.

ABHISEK TOSNIWAL

ABHISEK TOSNIWAL (Expert)
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15 June 2011 Dear Neetin,

Service Tax is applicable when your taxable turnover crosses 10 lacs in a financial year. In your case if tour taxable turnover(i.e. Brokerage income) crosses beyond this limit then you need to compulsorily take service tax no. from the concerned department.

Regards
Abhisek Tosniwal

Neetinkumar Vora

Neetinkumar Vora (Querist)
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15 June 2011 Dear Sir,
If suppose i have tuenover of 10lacs at the end of month january 2012,then after that i should apply for service tax number?from when i shoud start to charge my client?if after taking s.t.number,i fail to keep my brokrage income above 10lacs,in next year then what to do?please help me.
thanking you!
neetinvora.

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ABHISEK TOSNIWAL

ABHISEK TOSNIWAL (Expert)
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16 June 2011 When your turnover crosses 9 lacs, then you apply for registration. In case your turnover do not cross 10 lacs in a particular year then you dont need to charge service tax. In case it crosses 10 lacs start charging service tax.