Sales Tax or Service Tax?

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Hi,

I am a young entrepreneur running a map based website and I generate revenue through Ads. I offer my clients ad-space on my website and provide features based on their subscripttions.

Which tax am I liable to pay? Sales tax or Service tax?

Thanks & Regards

Raghav

Replies (4)

service tax

No doubt, its service tax, the basic difference being that you are providing 'Service' instead of sale of goods.

Thanks a lot for your information.

Could you briefly elaborate the Forms to be submitted, fees involved, documents to be submitted for the same?

Before registering yourself with Service tax authorities , please note that Small Service providers ,i.e, service providers whose aggregate value of taxable services does not exceed Rs.10 lakhs in a F.Year, need not pay service tax. In case of registration,a lower threshold of aggregate value of taxable services  p.a of Rs.9 lakhs has been prescribed(of course, you can choose .

Procedure for registration:

In case turnover for your company  has crossed Rs.9 lakhs this year(Financial year and not calendar year), within 30 days you need to do the following:

First apply for registration in Form ST1  to Superindentent of Central Excise who has jurisdiction over your registered office( You can get jurisdiction details online from https://exciseandservicetax.nic.in/sermon/location1.html). You can get Form ST1 online too.

Along with duly filled out Form ST1, if you should carry copies of your address proof and , PAN copy. No fees have been prescribed for registration- thus , if you submit the above documents , you will be registered under the Act within 7 days, and you will be given Registration cerrtificate in Form ST2( at least, thats what the Act says).

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