Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Rgistration Required or Not ??

Lakshmi (Student) (1836 Points)

20 July 2010

The provision regarding concessional tax treatment avaiable to small service providers r as below : -

Registration : It is required only if value of taxable service exceeds Rs.9,00,000/-

Excemption : It is applicable if value of taxable service does not exceed Rs.10,00,000/-

My doubt is dat :

If the person provides the service for more than Rs10,00,000/- he is to be reg. and pay the tax in the financial yr.

But if in the upcoming finanical yr he provides service for less then Rs9,00,000/-at that time can he cancel his reg. or he shld be regist. but no need of paying the tax??

Pls help me...

Thank you

Reply
Follow
Share

8 Replies

Deepesh Khatri (CA) (167 Points)
Replied 20 July 2010

Once registered, you have to collect and pay ST. You can cancel registration only if your turnover is below Rs. 5 lac for 3 consecutive years or if your business is dissolved.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

CA Shiv (Business Controller) (2987 Points)
Replied 20 July 2010

agree with Deepesh.....

1 Like

Vishwas V Rao ( Chartered Accountant) (239 Points)
Replied 20 July 2010

agree with deepesh....once u obtain the registration ur gross receipts donot matter....

1 Like

CS Vijay Daxini (At Practice) (732 Points)
Replied 20 July 2010

once u r registered under service tax irrespective of ur income service tax needs to paid to the dept

1 Like

(Guest)

Originally posted by : daxini vijay mahenderabhai
	once u r registered under service tax irrespective of ur income service tax needs to paid to the dept

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Shwetha (CA Final) (67 Points)
Replied 21 July 2010

Dear Lakshmi

even if there is no ST liability, it is mandatorily required to file the NIL return.

so, once registered untill it is cancelled return should be filed

1 Like

Lakshmi (Student) (1836 Points)
Replied 21 July 2010

Thank you all for ur kind response for clearing my doubt.

Raju K. A (service) (89 Points)
Replied 21 July 2010

If the value of taxable services in a financial year exceeds Rs.10 Lakhs , the assessee shall obtain ST regn. and pay ST. Further, the assessee has to pay ST in the succeeding financial year for the entire value of taxable service in the succeeding financial year whether it is below 10 lakhs or not. (proviso VIII of Notfn No.06/2005 ST dt 1.3.2005).

The assessee is not bound to pay ST, only because of ST regn. They are only bound to file nil return. They can avail SSI exemption subject to the conditions of the notfn.