Raghavendra Kopalle (Co-Founder) (39 Points)
08 February 2010Hi,
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
Varun.T.K
(CA Final, CS Executive)
(365 Points)
Replied 08 February 2010
No doubt, its service tax, the basic difference being that you are providing 'Service' instead of sale of goods.
Raghavendra Kopalle
(Co-Founder)
(39 Points)
Replied 09 February 2010
Thanks a lot for your information.
Could you briefly elaborate the Forms to be submitted, fees involved, documents to be submitted for the same?
Venkat M
(FCA)
(133 Points)
Replied 10 February 2010
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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