Query on service tax (Service Tax)

This query is : Resolved

Author : Anonymous

( Author )
05 July 2012

One party in Mumbai is engaged in the sub processing of digial signatures and the total value of the processing for a particular financial year is less than Rs.2,00,000/-. He had a tie up with a large scale processor and makes payment to the large scale proessor on piece rates basis and generates the signature at his end. The party is issuing an invoice and charging the processing charges for his services and makes payment to the large scale processor. The payment is made inclusive of service tax. As the signatures processed is branded one, is it necessary that the small scale processor should take service tax registration and collect service charges with effect from 01.07.2012.
Learned members views are solicited. Thanks in advance.

RENGARAJ R.K

( Expert )
05 July 2012

The Act says, any service provider using brand name cannot avail Small scale exemption of 10 lacs and hence the service becomes taxable immediately. This is applicable not only from 01.07.2012 but in earlier period also.