Need I register Service tax?

No need to register , if you are not recovering it from customers

Hi, Service Tax is applicable only after rendering more than Rs.10,00,000/*- taxable service.

My client received one time payment this month with servicetax added to his  bill by the receiver of service. How to deposit ST with Govt. Secondly, Does he needs registration as his turn over is below Rs.5 lakhs.? 

HI Bijay,

iN THE present case the service provider can not charge service tax as his turnover is below 10 lakhs. But if he is getting the payment along with service tax then either he should register himself under Service tax and deposit the same to the department or he should refund the tax amount to the customer to avoid any hassel afterwords.

For more clarifications you should consult a practitioner

Regards

Jeevesh Mehta

Service tax Consultant

9811617186

Dear Mr.Mehta

Thanks Mr. Mehta. It means, there is no way that he can deposit the ST received by him one time with the Govt as a bonafide person instead of returning the amount to to the payee ?

Regards,

B.K.Mohanty

9885046845

Dear Mr Mohanty,

Even if you want to pay the service tax for one time , then also you need to take the registration. 

Regards

what is the procedure for registration of servive tax?

Dear Piyush,

In order to register for service tax, one needs to file ST 1 with the department.

You can log on to www.aces.gov.in or may consult a service Tax Consultant for the said purpose.

Regards

Jeevesh Mehta

Service Tax Consultant

Ph: 09811617186

I still feel that there must be some way for one time srvice tax received , be paid to Govt. without registration as it's govt. money and should be deposited with govt. Why should one be registered  for one transaction  even if  threshold limit is not exceeded ? Can any body throuh light on this ?

B.K.Mohanty

After your service income cross 12 Lakh p.a belwo 12 Lakh not required !

Originally posted by : BIJAY KUMAR MOHANTY
	My client received one time payment this month with servicetax added to his  bill by the receiver of service. How to deposit ST with Govt. Secondly, Does he needs registration as his turn over is below Rs.5 lakhs.?

• your client has charged the service tax contents in their bill unknowingly, coz the payer never pays any additional tax apart from whats charged in bill, 
• ask them to refund the amount to the customer, stating that they have availed exemption, so they are making refund of service tax, 
• single time payout to service tax will invite registration and maintanance of whole procedure for this single entry.

If one recives the payment of service tax though not charged then the same can also be deposited under Section 73A. However better option is to retunr to the customer and keep evidence of having done so.

Thanks Mr.Madhukar. It is better to refund to the payee because ultimately under, Sec73A(6) if the amount of ST so collected by mistake or otherwise is deposited with Govt., A cumbursome procedure has to be followed by the payee to get the refund from the Govt.