Applicability of service tax
This query is : Resolved
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.
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.
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