Santosh Sharma (B.Com) (25 Points)
22 February 2016For income tax point of view 'x' filed ITR for FY 2013-14 with the 11 lac gross receipt and with 20%(220000) presumptive income. He further want to show presumptive income of Rs.260000/-.He is a job work contractor and he dont have service tax no. Is it consequences to service tax point of view by exceeding receipts more than 10 lac. For FY 2014-15 if he want to show receipt 13 lac without registration/ paying service tax.
Please suggest how can he proceed without paying service tax.
Venkatanarayana GM
(Partner associate at Hiregange & Associates)
(1279 Points)
Replied 24 February 2016
Dear Santhosh,
Any assesse is liable to be registerd under service tax law, if he is exceeded providing of taxable service income more than 9 lakh.
And liable to discharge service tax after crossing 10 lakhs of service income.
Venkatanaryana G.M
9620116162
venkat @ hiregange.com
Santosh Sharma
(B.Com)
(25 Points)
Replied 26 February 2016
thanks for your reply sir....
can he show that his total gross receipt of Rs.11 lac for diffrent services. Can he show recept Rs.8 lac from contract job work and Rs.3 lac from other diffrent service.
Sameer Sutradhar
(Chartered Accountant)
(26 Points)
Replied 26 February 2016
Dear Santosh,
A person is liable to get registration under service tax, if the Aggreagate Value of Taxable Service exceeds Rs. 9 lakhs during the financial year.
Aggregate Value of Taxable Service means -
Since, you are covered under Works Contract Services, kindly find the service value of works contract (following Rule 2A(ii) of Service Tax (Determinationof Value) Rules, 2006).
If it is still more than Rs. 9 lakhs, then registration is must.
Answering to your next question, breaking the total amount into multiple services won't help as aggregate value of all services is taken for registration.
Instead, show it as sale of goods, if possible legally.
Amit Kanunga
(Article Assistant and Post Gradute)
(644 Points)
Replied 26 February 2016
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Summary of previous notifications related to threshold exemption along with limit, date of applicability and relevant Notification numbers: 1. PeriodExemption limit (Rs.)Relevant Notification of Service TaxEffective date 01-07-1994 to 31-03-2005NilN.A.N.A. 01-04-2005 to 31-03-20074 lakhs6/2005* dt. 01-03-200501-04-2005 01-04-2007 to 31-03-20088 lakhs* as amended by 4/2007 dt. 01-03-200701-04-2007 01-04-2008 to 30-06-201210 lakhs* as amended by 8/2008 dt. 01.03.200801-04-2008 01-07-2012 onwards10 lakhsNotification No. 33/2012 dated 20.06.201201-07-2012 2. The threshold exemption, which was available to all service providers vide Notification No. 6/2005-ST dated 1.3.2005 as amended from time to time and last amended vide Notification No. 33/2012- ST dated 20.6.2012 (and new Notification No. 25/2012-ST dated 20.6.2012) has been superseded by Notification No. 33/2012 dated 20/06/2012. Since this exemption is available to the Service Provider only therefore only his transactions related to provision of service are eligible for the purpose of threshold exemption benefit. This exemption is not available to receiver of service under reverse charge [refer para (ii) of “what is exempted” given below]. If a service provider (SP) is also paying duty as service receiver (SR) under reverse charge or partial reverse charge, it will not be included or considered for the purpose of arriving at aggregate value exempted under notification number 33/2012. This exemption, of Rs 10 lakhs in current financial year from service tax payable on aggregate value of taxable services, is available to service provider on the basis of provision of aggregate value of taxable services rendered in the previous financial year if that does not exceed Rs. 10 lakhs for entity existing in previous financial year and in case of new entity, it is available for such turnover. Government of India has framed new conditions vide notification No. 33/2012-Service Tax, dated 20-06-2012 for threshold exemption to be availed by “small” service provider, which are discussed below; 3. What is Exempted vide notification No. 33/2012-Service Tax: Central Government has exempted taxable services of aggregate value not exceeding ten lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66B of the said Finance Act. But it is clarified that nothing contained in this notification shall apply to following (as per proviso); (i) taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; Here “brand name” or “trade name” means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, logo, label, signature, or invented word or writing which is used in relation to such specified services for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified services and some person using such name or mark with or without any indication of the identity of that person, OR (ii) such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified in section 68(2) |
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For income tax point of view 'x' filed ITR for FY 2013-14 with the 11 lac gross receipt and with 20%(220000) presumptive income. He further want to show presumptive income of Rs.260000/-.He is a job work contractor and he dont have service tax no. Is it consequences to service tax point of view by exceeding receipts more than 10 lac. For FY 2014-15 if he want to show receipt 13 lac without registration/ paying service tax. Please suggest how can he proceed without paying service tax. |
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