Applicability of Service Tax

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Mihir (Querist)
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10 April 2008 Mr. A has applied for Service TAx No. and paid the service tax during the FY 07-08. Now as per the new amendment he is not liable to pay service tax as his turnover is below rs.10 lacs for FY 2007-2008.

What will be his status in FY 08-09? whether he has to apply for cancellation of number?

Sheetal Metha

Sheetal Metha (Expert)
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10 April 2008 Hi Mihir, in this case Mr. A should continue his business without cacelling of Service Tax No. as in future his turnover raised to Rs. 1000000/- then he have to pay the Service Tax.

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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10 April 2008 There is no need of cancellation of ST number. Better will be the situation if he wont cancel the number and file nil return every half yearly till he is exempted. And as said by our friend Ms Sheetal, who knows Mr. A's business can be improved at any time.

R.V.RAO

R.V.RAO (Expert)
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11 April 2008 NIL SERV. TAX RETURN SHOULD BE CONTINUED TO BE FILED WITH SERV. TAX DEPT.BUT NO SERV. TAX NEEDS TO BE PAID.
NO CANCELLATION OF REGN NECESSARY NOR ALLOWED WITHOUT SUBSTANTING TO THE DEPT.ABOUT THE FUTURE LIABILITY OR OTHERWISE ABOUT WHICH NOBODY IS SURE.
R.V.RAO

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