service tax doubt

RICHA SHARMA (CA ) (202 Points)
Replied 03 October 2008

hi

There is no requirement for charging any service tax if the value of taxable service is below Rs. 10 lakhs in a year.

Since, in your case the value of service provide is below Rs. 10 lakhs during the year there is no need to charge service tax.

If in any year the value of taxable service provided is likely to exceed Rs. 10 lakhs then u have to charge service tax on it and got it deposited to the govt.

For this purpose you have to apply for service tax registration which is now a days PAN based.

Filing of ITR return will not work as you have to separately file service tax return (In case value of service exceed Rs. 10 lakshs in a year)

Note: I have not analyzed whether providing car on lease comes under the ambit of service tax as you are clearely covered under general exemption from service tax.

Dayal (Gen. Manager - Indirect Taxation) (3434 Points)
Replied 04 October 2008

Hi,

There is a clear intention to provide services under Rent-a-Cab services, which covers any person providing such services

However as clarified by Ms. Richa , you can take sheleter of SSP exemption of income from services upto Rs. 10 lacs in a financial year.

Should the income cross the limit of 10 lacs then all procedures under the act will need to be followed as stated by Ms. Richa

CA. C V SURYAM (Practising Chartered Accountant) (865 Points)
Replied 05 October 2008

Yes, Mr.Dayal is correct, as per the extant provisions of service tax.

George (Professional ) (20 Points)
Replied 15 October 2008

Rent a cab scheme came into effect 16.7.1997 even single cab is rented service tax is applicable. 60% of the taxable service is exempt in case of the renting a cab. there is service tax applicable but it is exempt if such services not exceeding the exemption limit Rs.10Lakhs per annuam.

In your stated case service tax question will not arise.

Thanking with regards

George Victor

(Guest)

Originally posted by :N.BALA RANGANATH

"

PLEASE CLARIFY MY FRIEND DOUBT
I purchased a new car and got it registered on my wife name.

My wife is working as LIC agent from 1year and her income is around Rs.40, 000/- per year.

I want the car to give it on lease to my company (where I work).

My doubts

1) Giving car on lease - does this attracts service tax?
2) Is there any thing like PAN number for Service Tax filing? If yes, what is the process to get that number?
3) Is there any basic limit below to which, no service tax need to be paid?
4) Assuming the car lease is Rs.12, 000/- per month, the income is Rs.1, 44,000/- per year.
Does she need to pay any service tax to government?
5) is it sufficient if my wife files IT returns showing the income as LIC agent + car lease? (without any service tax payment)

Thanks in Advance

In the same example as above-there is a consultancy income of Rs. 7.84 lakhs & apprx. 3.8 lakhs on account of car lease in the financial year. Therefore, need to have clarity whether car lease income attracts service tax or not.

Best regards,

Vineesh

"

venkatesh (Accountant) (20 Points)
Replied 18 November 2008

sir,

one doubt please clearly explain , i am working recruitment consultancy pvt ltd , we have received management consultancy fees received from foreign currency ,so now i wll be raise without tax invoice or wiht invoice , because foreign currency tax will come or not

please explain we requested to you

regards

venkatesh

CA. C V SURYAM (Practising Chartered Accountant) (865 Points)
Replied 18 November 2008

I think, with the facts made available by you, your services are falling under Export of Services. Thus your such services are exempt from service tax.

(Guest)

sir.

please suggest me, regarding finnancial year 07-08 our tournover Rs.665000/- IT filed but service tax returns (ST -3)not filed (our service man power recruitment pvt ltd) So i request to you anybody suggest to me because i have know touch of service tax. i will submit or not

Advance thanking you

yours venkata ramana

venkata ramana (accountant) (58 Points)
Replied 20 November 2008

sir.

please suggest me, regarding finnancial year 07-08 our tournover Rs.665000/- IT filed but service tax returns (ST -3)not filed (our service man power recruitment pvt ltd) So i request to you anybody suggest to me . now i will return submit or not

Advance thanking you

yours venkata ramana

CA. C V SURYAM (Practising Chartered Accountant) (865 Points)
Replied 21 November 2008

Hallo Mr.Venkata Ramana, as per notification no.4/2007-ST dt.01.03.2007, in the following cases your firm do not fall under service tax purview where the aggregate value of taxable services does not exceed Rs.8 lacs in FY 2007-08 and such aggregate value of taxable services rendered by provider of taxable service from one or more premises does not exceed Rs.8 lacs.

Since the turnover was only Rs.6.65 lacs during FY 2007-08, your firm did not fall under service tax purview and hence service tax return (ST-3) need not be filed and registration also need not be taken.

venkata ramana (accountant) (58 Points)
Replied 21 November 2008

Thaning you sir,(Mr.c.v.suryam CA0

Sir,

Thanking you sir for your suggestion and one more doubt please clarify me . regarding fin.year 06-07 registraion done that period service tax return filed and tax paid but this year 07-08 only not filed (because trunover rs. 665000/-) and this year 08-09 half year return filed and tax paid so i have doubt that period only 07-08 not need service tax file sir, please suggest me,

and fixed assets(all) as per sales tax act deprecition % required, and regarding this year for ( example )one coputer with ups purchase rs.62450/- dt2/6/2008 what is dep.value will come and dep.% required

Regards

venkata Ramana

venkata ramana (accountant) (58 Points)
Replied 21 November 2008

Thaning you sir,(Mr.C.V.Suryam CA)

Sir,

Thanking you sir for your suggestion and one more doubt please clarify me . regarding fin.year 06-07 registraion done that period service tax return filed and tax paid but this year 07-08 only not filed (because trunover rs. 665000/-) and this year 08-09 half year return filed and tax paid so i have doubt that period only 07-08 not need service tax file sir, please suggest me,

and fixed assets(all) as per sales tax act deprecition % required, and regarding this year for ( example )one coputer with ups purchase rs.62450/- dt2/6/2008 what is dep.value will come and dep.% required

Regards

venkata Ramana

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CA. C V SURYAM (Practising Chartered Accountant) (865 Points)
Replied 21 November 2008

Mr.Venkata Ramana, your query needs more clarity unless which no reply can be given by presuming and intrepreting what you have in mind and what you want to say. Please try once again to improve clarity in your query.

A (Engineer) (132 Points)
Replied 24 November 2008

service tax querry - my company has a transaction of 14 lakhs, so the service tax payable will be on 14 - 10 = 4 lakhs or onthe total amount of 14 lakhs.

Also suggest my registration is for Information Technology Services & the service provided is human capital for IT related service, so what should be the code for the service tax to be filled in the tax challan. DO we need to have two registrtions for two different type of services