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Applicability of Service Tax

21 April 2009

One of my client is running an Authorised Service Centre of Epson. Plz tell me whether he is liable to pay service tax or not. His annual turnover is around 4.5 lacs.

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6 Replies

Varun Pandya (Practice) (69 Points)
Replied 22 April 2009

Originally posted by :Paramjeet Singh
"	One of my client is running an Authorised Service Centre of Epson. Plz tell me whether he is liable to pay service tax or not. His annual turnover is around 4.5 lacs.	"

Paramjeet,

Your client will not be liable to pay service tax as he is not crossing the threshold limit of Rs. 10 lacs. Only once he crosses 9 lacs he shall be liable if covered under taxable services

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Jyoti Malik (ACCOUNTANT) (2644 Points)
Replied 22 April 2009

Yes Mr. Varun is right

Arun Kumar Singh (GST Advocate) (15203 Points)
Replied 22 April 2009

He is not liable to pay Service Tax. Because your Annual turnover is less than 10 Lacks.

CA CS Akashdeep Singh (Practicing CA) (1394 Points)
Replied 22 April 2009

If in last year ur client's turnover crossed Rs. 10,00,000, and already registered under service tax, then ur client is liable to pay service tax on such Rs. 4,50,000/- otherwise no

sanjeev kumar (Assistant Manager-Accounts) (27 Points)
Replied 23 April 2009

Service tax applicable on those assesse whose turnover exceeds Rs.10 Lacs so there is no question of applicability of service tax .

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Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 24 April 2009

Branded Services are not eligible for the Rs.10 Lakhs exemption. It is to be ensured whether servicing is also a service provided by Epson.

If they only trade/ manufacture/ sell then the services provided by you are not branded. If they themslevs also do the servcing under their own brand name then the basic exemption may not be available.