NEHA31 (Business Manager) (64 Points)
10 April 2009Sir
My partnership firm is registered under U.P VAT from Oct 2008. We have not got ourself registered for service tax uptil now. We have got a contract in PSU and have to bill for installation and supplly of the material. So, when should we apply for SERVICE TAX.? I heard that within 30days of the billing of any service, the contractor can apply for service tax..Is it true and also in how many days service tax no:mis allotted after the suimission of application..
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 10 April 2009
Pl ensure you bill properly only for the service value unless of course you go for compostion of 4.12%.
Registration is to be obtianed within 30 days of provision of services. Normally granted within 1 week of application. [ ensure dated acknowledgement obtained]
SIDDHARTHA SANKAR ROY
(Government Servant -MOF)
(868 Points)
Replied 10 April 2009
| Originally posted by :NEHA MEHROTRA | ||
| " |
Sir
Since you are providing taxable service for the first time, you have the option of availing exemption upto Rs 10 lakhs aggregate value of service.In such case you are not charge service tax until your aggregate value of service reaches Rs 10 lakhs and register only when you cross threshold limit of Rs 9 . |
" |
NEHA31
(Business Manager)
(64 Points)
Replied 10 April 2009
thanx for the suggesstions. We are expecting to get a bigger order in which limit will certailny increase. So, should we wait for the registration till we get that order and till then we should not bill for serevice tax.
SIDDHARTHA SANKAR ROY
(Government Servant -MOF)
(868 Points)
Replied 10 April 2009
Your limit does not depend on the value of order you receive. It depends on the aggregate value of taxable services provided by you. Wait till aggregate value (basically turnouver)crossesses Rs 9 lakhs before you take registration, ofcourse if you decide to avail the exemption. Otherwise, you can opt not to avail the exemption and start billing for value of service anlong with service tax from Re 1.
CAclubindia
