Tax query

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Jyoti (Querist)
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15 November 2012 One of my friend has business of Labour Assembly. So I would like to ask whether he has to register for service tax and sales tax both or only service tax registration after turnover exceeds Rs.10 Lacs.

As in their business no material is purchased from outside,material is alloted by their client and he has to supply labour only. So whether sales tax registration is required as his consultant ask him to register both.

CA.ATUL GUPTA IPCC TAX FACULTY

CA.ATUL GUPTA IPCC TAX FACULTY (Expert)
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15 November 2012 YOUR FRIEND CONSULTANT IS VERY MUCH RIGHT AND THEY HAVE TO REGISTER FOR BOTH SERVICE TAX AND VAT.THIS SITUATION FALLS IN WORK CONTRACT SITUATION ND THEY CAN PAY ONLY 4.8% SERVICE TAX INSTEAD OF 12%.

MOREOVER THEY NEED TO REGISTER IF THERE TURNOVER CROSS 9 LAKH NOT 10 LAKH

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Jyoti

Jyoti (Querist)
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30 November 2012 Bt sir, for if they register for VAT,then they have to pay Rs.25000/- for registration which can be availed as credit on purchase of Rs.500000/-. But they have only minor purchase, so its nt possible that purchase will become Rs.500000/- in one or two years. So could u please guide after registration how to avail such credit or whether they can take such credit against service tax or not. Thanks.

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