Service Tax on rent for commercial property
This query is : Resolved
13 March 2008
My client is rendering professional services and his gross receipts are in excess of Rs.10 lakhs i.e. above the exemption limit.
He has a service No. AA..... ST001 in the name of his proprietorship firm
He receives rent for commercial property. Since as an assessee he has already crossed the exemption threshold, he would be liable for ST on the rental income received in his personal name.
Querry
Should he apply for a separate ST No. by giving a different address. In this manner his number will become AA..... ST002
Can he use his existing ST Code for the rental income. Pls remember that the registration is in the name of his proprietorship firm while the rental income would be received in his personal name.
My client is rendering professional services and his gross receipts are in excess of Rs.10 lakhs i.e. above the exemption limit.
He has a service No. AA..... ST001 in the name of his proprietorship firm
He receives rent for commercial property. Since as an assessee he has already crossed the exemption threshold, he would be liable for ST on the rental income received in his personal name.
Querry
Should he apply for a separate ST No. by giving a different address. In this manner his number will become AA..... ST002
Can he use his existing ST Code for the rental income. Pls remember that the registration is in the name of his proprietorship firm while the rental income would be received in his personal name.
13 March 2008
In my opinion PAn no. of proprietorship concern and Individual is the same so on same pan no. double ST No. will not be made. So on same no. Service tax (on Fees and Rental income )would be deposited.
13 March 2008
You have to make an application for rental income in personal name than department will give you an additional digit to your present STC code like AAA.........001,002,003.As and when u get yourself registered for any new service you will be given a new STC code in which first 12 digits are same but next 3 digits get changed.It means at the time of first registration u will get 001 in your STC code,at the time of registration of second service,u will get new STC code with last three digit i.e.002 and so on.
13 March 2008
ONE HAS TO MAKE AN APPLICATION TO CENTRAL EXCISE DEPT, TO INCUDE THE NEW SERVICE AND THE DEPT. WILL INFORM THE RANGE , AREA CODE, NEW DEPOSIT CHALLAN, ETC.. T AND ADDITIONAL DIGITS WILL BE ADDED IN SERV. TAX REGN. NO AND THEN ONLY PAYEMNTS WILL BE ACCEPTED .THIS IS BECAUSE THE SERVICE CODE HAS CHANGED.THIS WILL ALSO HELP IN ANY SET OFF IF APPLICABLE AND FILING OF RETURNS.
R.V.RAO
R.V.RAO
13 March 2008
he need not get additional stcode instead he has to write a letter to the department to add another category / service
14 March 2008
My question has more to do with the practical aspect of the situation.
Since the service tax return for the original ST code has to be filed in the name of the firm i.e. M/s ABC can We include the details of service tax deposited and invoiced in the personal name of the proprietor i.e. Mr. Gupta. Would this be a correct stand. Can we raise the bill in name of Mr. Gupta and deposit the service tax in name of M/s ABC.
However, since we can get a second ST code by giving a second address would this be a better solution or should we go with the first option
Since the service tax return for the original ST code has to be filed in the name of the firm i.e. M/s ABC can We include the details of service tax deposited and invoiced in the personal name of the proprietor i.e. Mr. Gupta. Would this be a correct stand. Can we raise the bill in name of Mr. Gupta and deposit the service tax in name of M/s ABC.
However, since we can get a second ST code by giving a second address would this be a better solution or should we go with the first option
15 March 2008
My dear friend, the SSP provisions are very clear, that income from all sources and business operations in the same name will be clubbed for the purpose of threshold limit.
I forsee litigations if you proceed for an additional service tax registration, you may please review this at your end, before taking any adverse step.
I am clear on the aspect as far as the following definiation covers your matter
"provided that the aggregate value of taxable services rendered by such provider of taxable service from one or more premises,..........
I forsee litigations if you proceed for an additional service tax registration, you may please review this at your end, before taking any adverse step.
I am clear on the aspect as far as the following definiation covers your matter
"provided that the aggregate value of taxable services rendered by such provider of taxable service from one or more premises,..........
15 March 2008
First check whether the earlier service tax registration has been issued by using firm's PAN no. or personal PAN no.
If it has been issued based on firms PAN no. then the rent recd. in individual capacity or in personal name will be treated as seperate from the firm and a new registration may be taken on the basis of personal PAN.
As far as deposit of tax is concerned if the income from renting is shown in the books of firm then definitely it has to be deposited in firm's name and a new service has to be got added in the firm's regn. by applying on the prescribed form.
Now all the alterations/changes in the existing registration are allowed to be done by applying on prescribed format which is the Application for Registration which have column to indicate whether it is a fresh regn. or renewal/addtion is reqd.
My self may be approached at Arbindaggarwal@yahoo.com for professional help if reqd.
If it has been issued based on firms PAN no. then the rent recd. in individual capacity or in personal name will be treated as seperate from the firm and a new registration may be taken on the basis of personal PAN.
As far as deposit of tax is concerned if the income from renting is shown in the books of firm then definitely it has to be deposited in firm's name and a new service has to be got added in the firm's regn. by applying on the prescribed form.
Now all the alterations/changes in the existing registration are allowed to be done by applying on prescribed format which is the Application for Registration which have column to indicate whether it is a fresh regn. or renewal/addtion is reqd.
My self may be approached at Arbindaggarwal@yahoo.com for professional help if reqd.
15 March 2008
Mr Dayal
I am not seeking a separate ST registration. I am merely talking about getting a seperate ST code based on the same PAN. The new code would read as AA.... ST002, where the 002 would imply a seperate billing address
In any case please advice if we can raise the bill in name of Mr. Gupta and deposit the service tax in name of M/s ABC which is his proprietor ship concern.
I am not seeking a separate ST registration. I am merely talking about getting a seperate ST code based on the same PAN. The new code would read as AA.... ST002, where the 002 would imply a seperate billing address
In any case please advice if we can raise the bill in name of Mr. Gupta and deposit the service tax in name of M/s ABC which is his proprietor ship concern.
31 March 2012
If a service provider starts providing an additional service, he merely has to get his registration certificate amended by adding the new service.
The service tax number shall remain the same. Only an additional service shall be added.
The service tax number shall remain the same. Only an additional service shall be added.
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