Service Tax Registration

This query is : Resolved

Neeraj Kumar (Querist)
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19 December 2009 have confronted with the situation where a person is providing services to SEZ only and he is about to cross the limit of Rs 9 lakhs whether he is liable for registration under service tax and whether Export of service is to be consider or not for deciding the registration limit.

If he is liable for registration then whether he has to charge service tax on the invoicing in DTA even though he has provided the services to SEZ only till date

Mr A
Sevices Provided = Rs 9,00,000 SEZ
Service Provided = Rs. 2,00,000 Other (Mr. X)

Whether he has to get registered and whether he has to charge to service tax from Mr. X.

Please treat it as urgent.

Yours Truly

Thanx n regards

Neeraj Taneja

SANJAY JAIN

SANJAY JAIN (Expert)
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19 December 2009 In the above facts it is presumed that service provider receives all payments in the same financial year equal to the value of service provided.

First of all take the situation where the services are being provided to SEZ unit and being consumed inside SEZ and the value of services is about to cross 9 lakh in the current financial year. In this case no need to apply for the registration as in terms of the Notification No. 26/2005-ST dated 07.06.2005, the AGGREGATE VALUE OF TAXABLE SERVIEC means first consecutive payments received towards the taxable services reduced by the value of exempted services. Here the services provided to SEZ developer/Units are exempted vide Notification No. 9/2009-ST dated 03.03.2009.

Further to note that suppose on the completion of current financial year, the data come in such manner,

Value of service provided to SEZ 9 lakh
Value of service provided to DTA 2 lakh

In the above scene, the service provider would not in position to avail exemption limit of 10 lakh provided in Notification No. 6/2005-ST dated 01.03.2005 in the next financial year. In next financial year he is to pay tax right from the beginning on providing services to DTA unit, though exemption on service providing to SEZ would be continue in the next year too.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana)