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Proprietorship Concern and Service Tax in Training Industry

rajat (proprietor) (25 Points)

25 September 2010

Please assist me.I am running a proprietorship concern which is into providing Corporate Training to reputed companies.However I am in first year of operation, and have not crosses Services worth of Rs 10 lakhs.I also do not have a PAN No. in the name of proprietorship.However, I have my PAN No. i.e. the PAN No. of proprietor is there but not of proprietorship.

Q1. Do I need to register with the service tax department?

Q2. Do I need to apply for a separate PAN No. for the Proprietorship concern,even though I have the PAN Card of myself i.e. Proprietor

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Harsha (Chartered Accountant CS (Final)) (227 Points)
Replied 25 September 2010

You need to register with the Service Tax department after crossing turnover of 9 lakhs in a financial year. Further, Service Tax needs to be charged on the bills done after crossing turnover of 10 lakhs.

You can register with department by giving your own PAN. There is no need to take PAN for your concern.

Note: Exemption for Small Service providers avaiable only if in the previous year the turnover does not exceed 10 laksh. Otherwise Service TAx needs to be discharged from the first billing

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rajat (proprietor) (25 Points)
Replied 25 September 2010

Thanks Harsha. I was filling up a vendor registration form of a reputed company.It would be nice if you could let me know, by which section of the service tax laws, the 9 lakh condition has been mentioned.I could quote the same to them and avoid any chances of dispute.