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Service Tax registration

S.Jeyendran (Student of CA Final Course) (207 Points)

14 January 2008

Dear Friends,

Kindly clarify whether registration under Service Tax Act is complusory for a travel agent whose gross receipts exceeds Rs.8.00 Lakhs per annum. Can you please reproduce the relevant section under service tax with your answer?

Regards

S.Jeyendran

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2 Replies

Amit Sharma (article) (2677 Points)
Replied 15 January 2008

The turnover limit, i.e., the aggregate value of taxable service for threshold based exemption is, currently, Rs. 8 lakh in a year. However, a person availing of this exemption is required (under section 69 of the Act, read with notification no.26/2005-ST) to register with the department on achieving a turnover of Rs 7 lakh in a financial year in respect of all taxable services provided by him. The expression “aggregate value not exceeding the threshold value of Rs 8 lakh” has been defined in notification No. 6/2005-ST.

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S.Jeyendran (Student of CA Final Course) (207 Points)
Replied 15 January 2008

Thank You very much. Then, you mean to say that the registration is mandatory irrespective of turnover achieved by the service provider. Did the employer has got the right to reject the Bill submitted for LTA claim which does not have the service tax registration no. of the service provider?