Service tax registration

This query is : Resolved

Deepti Gunwani (Querist)
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17 December 2010 Mr. X started providing services of management consultant in 2008. He did not register himself with the department as his services exceeded the limit of Rs. 9L in first year and were below 9 L in 2nd Year. Again in 2010 his service is below 9L. Do he need to register? If yes, what would be the penalty on him for late registration.Also, kindly advice how the assessment of servie tax is done.

CA. BHAVIK DILIPBHAI MEHTA

CA. BHAVIK DILIPBHAI MEHTA (Expert)
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18 December 2010 Service tax registration is compulsory when the turnover crosses Rs. 9 lacs for the first time.

In case the same is not done, penalty u/s. 77 of Service Tax Act is levied. Penalty shall extend to Rs. 5000 or Rs. 200 per day during which the default continued shall be levied.