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Service tax for partnership firm

Boopathy (own) (148 Points)

13 September 2013

can you explian service tax applicability for Partnership firm

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Devendra (Chartered Accountant) (4775 Points)
Replied 13 September 2013

1) If the Partnership Firm is providing any taxable services and if the Gross Receipts of such services exceeds beyond the threshold limit, then the Partnership Firm shall levy Service Tax separately in their invoice. But the Partnership firm shall register with the Service Tax Dept. and obtain a Service Tax Registration Certificate.

2) Such Service Tax collected from the customers shall be paid to the Government.

3) The Rate of Service Tax is 12.36% (including SHEC 1% and EC 2%).

4) Service Tax payment is quarterly.

5) Service Tax Return to be filed half yearly.

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CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 13 September 2013

Dear Sir,

In general (as you are asking generally), the partnership firms have option to charge service tax on old basis (not on Point of Taxation Basis) but only if it provided services upto Rs. 50 lakh in the previous year, then it has option to pay service tax on receiving basis upto Rs. 50 lakh of service provided during the current year.

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

1 Like

Ritzz (CA Final - Article ) (365 Points)
Replied 14 September 2013

Originally posted by : Devendra
	1) If the Partnership Firm is providing any taxable services and if the Gross Receipts of such services exceeds beyond the threshold limit, then the Partnership Firm shall levy Service Tax separately in their invoice. But the Partnership firm shall register with the Service Tax Dept. and obtain a Service Tax Registration Certificate. 2) Such Service Tax collected from the customers shall be paid to the Government. 3) The Rate of Service Tax is 12.36% (including SHEC 1% and EC 2%). 4) Service Tax payment is quarterly. 5) Service Tax Return to be filed half yearly.