Raman R (Partner) (248 Points)
05 October 2009An individual who is a director of a private company, is taking an individual assignment in his individual name. The nature of assignment is 'Consultanty for rendering marketing services' and the value exceeds the threshold limit of Rs. 10 Lakhs. I would like to know the applicablity of 'Service Tax' for this assignment.
Regards,
R. Raman
Gautam Joshi
(Partner)
(361 Points)
Replied 05 October 2009
Hi Raman,
Absolutely Yes! Director and company are seperate persons and hes required to first register and pay service tax on such transaction.
If hes earning commission income and promoting someone's goods or services then register under Business Auxiliary Service or if hes earning fees out of such transaction then register under Business or Management Consultant Service. Classification of service will depend on facts basis.
Regards.
Raman R
(Partner)
(248 Points)
Replied 05 October 2009
Many thanks Mr. Gautam and If I am correct, he can also avail benefits for input tax.
Regards,
R. Raman
Gautam Joshi
(Partner)
(361 Points)
Replied 06 October 2009
Welcome Raman.
CENVAT right always arises with the payment of Service Tax and so he can very well avail and utilse the same.
Raman R
(Partner)
(248 Points)
Replied 06 October 2009
Thanks once again, Mr. Gautam.
Regards,
R. Raman
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 15 June 2012
Hi, i agree with gautam joshi. He is supposed to apply for registration when once he crosses 9 lacs. And after availing first 10 lacs, he can start remitting tax. For availing cenvat benefit, the input bills should be in the name of the individual and the same should not be related to output tax.
rengaraj r.k
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