Purvi (Student) (82 Points)
22 August 2008Hi
One of My frnd is Hardware & Network Engg. & he is doing Job, he also sales / purchase & provide services for Hardware & networking, but some of his customer asking for Bill. So can he issue them Bill without charging Service Tax . Or he has to first register his or firm name under Service Tax / Vat.
Please reply me on purviva @ yahoo.co.in
CA MOHIT VAATS
(Consultant)
(554 Points)
Replied 22 August 2008
If the services during a year not exceeding Rs.1000000 then your friend did not require any service tax to be charged.
But in case the service exceed Rs. 700000 then registration is mandatory, but still not liablity to service tax.
so , check with your friend whether the above condition are qualify by him...
OFFICESELVA
(Service)
(515 Points)
Replied 23 August 2008
To just add: He should obtain registration if the income exceeds Rs.9 Lakhs and start paying tax when then income crosses Rs.10 Lakhs.
CAclubindia
