Turn over not exceed 10 lac but s.tax registred
This query is : Resolved
07 September 2013
dear Sir,
One of my new client doing taxable services. it is a newly started proprietorship concern. he is sure that his turnover will not exceed 10 lac in first year. but one pvt bank staff registered Service tax for his company to open a bank current account. my client is not aware on that. my query is
1. once registered should he collect s.Tax from his first invoice.
2. he is not comes under mandatory registration, but he registered. is it offence?
3. if he should not collect S.Tax.Should he has to file nil return?
Kindly clarify me.
One of my new client doing taxable services. it is a newly started proprietorship concern. he is sure that his turnover will not exceed 10 lac in first year. but one pvt bank staff registered Service tax for his company to open a bank current account. my client is not aware on that. my query is
1. once registered should he collect s.Tax from his first invoice.
2. he is not comes under mandatory registration, but he registered. is it offence?
3. if he should not collect S.Tax.Should he has to file nil return?
Kindly clarify me.
07 September 2013
Under the Finance Act 1994 (Referred as Service Tax Law) a person having lower gross receipt can avail SSI Benefit.
(For current period notified under notification no. 33/2012)
Registration for Service Tax is required if person is liable to pay service tax under reverse charged mechanism or having SSI Exemption he has or about to receive receipt exceed 9 lac or He has collect any amount from any person as Service Tax.
If person got registration he can avail SSI Exemption (if he is otherwise eligible e.g. P. Y. turnover, brand name etc.) and opt for not to collect any amount as service tax up to first consecutive gross taxable receipt of Rs. 10 Lac.
If any amount has been collected as service tax before or during such first consecutive taxable gross receipt than it is deemed that the person has opt for not to avail SSI Exemption from and onwards such first receipt for that Financial Year and he is required to collect Service Tax and pay it to the government.
Registration is required for making ST Payment to Government, Filing Returns etc.
If Registration is availed but the person has not liable to pay tax then He is not fall within the category of assesse. Registration if not intent fully wrong then is not an offence.
NIL returns means you conveying the message to the department that you have not collect and paid service tax for any reason. It is preferred to avoid consequence of the cause of not filing the return.
(For current period notified under notification no. 33/2012)
Registration for Service Tax is required if person is liable to pay service tax under reverse charged mechanism or having SSI Exemption he has or about to receive receipt exceed 9 lac or He has collect any amount from any person as Service Tax.
If person got registration he can avail SSI Exemption (if he is otherwise eligible e.g. P. Y. turnover, brand name etc.) and opt for not to collect any amount as service tax up to first consecutive gross taxable receipt of Rs. 10 Lac.
If any amount has been collected as service tax before or during such first consecutive taxable gross receipt than it is deemed that the person has opt for not to avail SSI Exemption from and onwards such first receipt for that Financial Year and he is required to collect Service Tax and pay it to the government.
Registration is required for making ST Payment to Government, Filing Returns etc.
If Registration is availed but the person has not liable to pay tax then He is not fall within the category of assesse. Registration if not intent fully wrong then is not an offence.
NIL returns means you conveying the message to the department that you have not collect and paid service tax for any reason. It is preferred to avoid consequence of the cause of not filing the return.
Message likes :
1 times
07 September 2013
Thanks and one more small doubt SSI exemption means Small Scale Industries?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
- Need to correct "Whether it is last installment " response in Form 26 QB
Trending Online Classes
CAclubindia
