Turnover and service tax
Ashish Kumar (Partner) (38 Points)
14 February 2017Ashish Kumar (Partner) (38 Points)
14 February 2017
Saikrishnan S
(Chartered accountant - Plintron)
(186 Points)
Replied 14 February 2017
What is the nature of service they provide. It should be checked whether the same falls under negative list, exemption category.
If the service falls under such category, no need to obtain Service tax registration even if it exceeds the threshold limit of 10Lakhs.
Ashish Kumar
(Partner)
(38 Points)
Replied 14 February 2017
Its a private limited company providing IT services of website development and also they are aggregators of taxi services with mobile application..
Saikrishnan S
(Chartered accountant - Plintron)
(186 Points)
Replied 14 February 2017
Under Notification number 30/2012 as ammended by notification 7/2015, for few services reverse charge mechanism applies i.e service receipient has to deduct and remit the service tax amount. Aggregator service is one such service.
'aggregator' means a person, who owns and manages a web based software application, and by means of the application and a communication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the aggregator.
Hence since this company provides service which falls under reverse charge mechanism, Service tax is not charged in the invoice and it is the responsibility of the service recipient to deduct, remit service tax.
Ashish Kumar
(Partner)
(38 Points)
Replied 14 February 2017
But they have consultation charge and they should charge service tax on it.
Saikrishnan S
(Chartered accountant - Plintron)
(186 Points)
Replied 15 February 2017
Hi Sir,
Refer that notification which i have mentioned in my above reply.
The legal services are also included under reverse charge mechanism, subject to certain conditions.
https://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2012/st30-2012
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