Service tax payment

This query is : Resolved

CHAITANYA (Querist)
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03 November 2014 hi all, Sir, my father is working as a quality control manager in a pharmaceutical MNC company on a contract basis as service provider from past 2months.. And the company is remitting salary including service tax 12.36% to the bank account.. please guide the procedure how and when I have to pay service tax n under which category of service should I pay.. and is it compulsory to do service tax registration if yes, pls guide me the procedure.. Regards Lokesh

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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04 November 2014 Presuming that there is no employer employee relationship, and your father can be said to be service provider providing management consultancy services considering the facts of the case, the assessee needs to be registered under the service category Management Consultancy Services, and the service tax may be paid by the 6th of the month following the month in which the service charges is received.(Presuming the service charges do not exceed Rs. 50 lakhs )

For taking service tax registration the service charges needs to cross 9 lakhs in a Financial year.

Further Not. 33/12 exempts small scale service provider for service charges upto 10 lakhs receibved in a financial year if the aggregate value of service charges does not exceed Rs. 10 lakhs in the preceeding year. Plz. chk the Not. for compliance of other conditions.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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04 November 2014 Please also note that if service tax is collected separately then service tax registration is required mandatorily and paid within the due date irrespective of Not. 33/12.

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Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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05 November 2014 Agree with Expert Vishaka Kejriwal. Since the company has paid service tax to your father, he is required to get ST Registration under the category "Management Consultancy Services" and discharge the liability quarterly. For registration with Service Tax authorities log into the ACES.Gov.in site.