Sripada M (CA) (365 Points)
01 January 2009Hi all,
If an Indian small service provider (taxable service is less than 10 lakhs) who has not registered, recieves service from foreign service provider worth Rs. 20 lakhs.
Is Indian service recipient liable to get registered under service tax? and should he pay the service tax?
Ritesh
(CA Final)
(326 Points)
Replied 01 January 2009
However if service receiver is Individual and such service received by him is not for any business & commerce,Section 66A then wont apply.If that is the case, then no registeration required in your case & hence no service Tax liability
For further clarification,Read Sec.66A with Sec. 68(2) of Finance Act alongwith Notification No. 6/2005 as further amended
Sripada M
(CA)
(365 Points)
Replied 01 January 2009
Mr. Ritesh, i am talking for business purpose...!
Ritesh
(CA Final)
(326 Points)
Replied 01 January 2009
However if service receiver is Individual and such service received by him is not for any business & commerce,Section 66A then wont apply.If that is the case, then no registeration required in your case & hence no service Tax liability
For further clarification,Read Sec.66A with Sec. 68(2) of Finance Act alongwith Notification No. 6/2005 as further amended
Ritesh
(CA Final)
(326 Points)
Replied 01 January 2009
Hi Sripada,
My entire reply is not posting properly.What you are seeing is only a part of it.I dont know whats the problem????Is there any limit on No. of characters?? I dnt think so.........
Ritesh
(CA Final)
(326 Points)
Replied 01 January 2009
Please see the attached file
Ritesh
(CA Final)
(326 Points)
Replied 01 January 2009
Hi Sripada,
there is a problem with my System,My MS Office..................... Thats why i cant even send you an attachment. I will try for the one last time. Its now getting frustrating for me..........I knw for you too, it might be getting frustrating ...................................................
Ritesh
(CA Final)
(326 Points)
Replied 01 January 2009
I hope you get it this time atleast.
As per Sec. 66A, Yes Service Receiver will be required to get registered & pay Service tax.
As far as claimimg Exemption of Rs. 10 lacs is concerned, Not. No. 6/2005 as further amended clearly states, that abovesaid Service wont be counted for computing Rs. 10 Lacs. In other words,Exemption of Rs. 10 Lacs can't be claimed in respect of abovesaid Services........Hence tax needs to be levied on such payments as & when such payments are received .
For further clarification, do read Sec. 66A read with Se. 68(2) of Finance Act along with Not. No. 6/2005 as further amended.
Ritesh
(CA Final)
(326 Points)
Replied 01 January 2009
However Sec. 66A wont be applicable if Service Receiver is an Individual & Services received are not for any Business & Commerce.......Since you have already stated that it is for Business, hence Sec. 66A would be attracted
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