Applicability of service tax
This query is : Resolved
Pankaj Gupta.
(Querist)
11 March 2016
Actually we have query on applicability of Service Tax
A Company Secretary (Partnership firm) provides Professional services and manpower supply services.
Manpower supply services are being provided only to Private limited company.
This is First year of partnership firm.
Query:
Manpower Supply Services amount has exceeded the threshold limit but Professional service are below the threshold limit of Service tax.
so whether service tax will be applicable on Professional Fee amount or not and have to register under service tax or not.
A Company Secretary (Partnership firm) provides Professional services and manpower supply services.
Manpower supply services are being provided only to Private limited company.
This is First year of partnership firm.
Query:
Manpower Supply Services amount has exceeded the threshold limit but Professional service are below the threshold limit of Service tax.
so whether service tax will be applicable on Professional Fee amount or not and have to register under service tax or not.
Suresh Ramaswamy
(Expert)
12 March 2016
Since as a service provider, your turnover exceeds the threshold limit you should get registered with the Service Tax authorities for both the services Company secretary in Practice and Manpower Supply service. Not being a body corporate and providing services covered by Notification 30/2012, you only don't have the liability to collect and pay the service tax which falls on the recipient under Reverse Charge Mechanism. But on your Professional Services you ought to collect service tax since your turnover exceeds the threshold limit.
The turnover of services in your P&L Account would show a figure exceeding Rs.10 Lakhs. And in the ST - 3 return too you have to disclose the total turnover and then claim deductions - Manpower Supply is not an exempt service and hence forms part of Turnover subject to Service Tax, but deductible under the Reverse Charge Mechanism.
The turnover of services in your P&L Account would show a figure exceeding Rs.10 Lakhs. And in the ST - 3 return too you have to disclose the total turnover and then claim deductions - Manpower Supply is not an exempt service and hence forms part of Turnover subject to Service Tax, but deductible under the Reverse Charge Mechanism.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Nursery business
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
