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Service tax applicability

G V RAO (Retired) (58 Points)

14 August 2017

hello,

I am retired and rendering technical service to a firm. my total service charges in this FY will be arround 19 lakhs(inclusive of 18% GST which company pays to me).as such this total amount is less than Rs 20 lakhs and as per GST rules I am exempted to register for service tax and also I need not pay service tax to government. however there is 10%income tax deduction on my service earnings. besides this I have interest income to the tune of arround 5 lakhs in a year which makes my total income in a year to more than Rs 20 lakhs. Of couse,I will be accounting every thing in my IT returns. My querry is "since my total income is more than 20 lakhs, am I required to register for service tax and pay GOVT service tax in addition to income tax..I request GST experts to clarify and advise..thanks in advance..regards

G V RAO

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 14 August 2017

For registration under GST your technical services along with any other services like rental income etc. is counted............ but not the interest income.

So, till that amount doesn't cross 20 lakhs mark........... no need to register under GST.

But in case you provide services to outside your own state (called interstate supply)....... registration under GST would be mandatory.

Well, for income tax all such incomes including interest would be added for filling ITR.......

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PaulineSinclair (car) (27 Points)
Replied 15 August 2017

G V RAO is asking the right questions too. I am quite confused in other words is not very knowledgeable about the issue of personal hiring. Dhirajlal Rambhia shared the information that helped us. Now I know and how to do it.

G V RAO (Retired) (58 Points)
Replied 16 August 2017

Thank you very much

YAMUNA CHS.SOC.LTD. (Tax Consultant) (24 Points)
Replied 16 August 2017

what will be the rate of gst for labour charges for rope and safety harness products the company is registred under gst act or not registred gst act whether rcm would be aaplicable and we should cliam itc.