apply for service tax no.

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This query is : Resolved

Piyush Jindal (Querist)

07 March 2009 is there any limit for applying service tax no. for any sevice provider.
or it is always neccessary for a service provider to apply for service tax no.

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)

07 March 2009 If your output service is taxable and you want to take Input Service tax credit then you have to take voluntry Registration
And
when your Taxable Service Turnover exceeds Rs.8 Lacs then it is mandatory to take Registration and your liability for payment of service tax arose once your Turnover exceed Rs.10 Lacs

Ankit Dawar

Ankit Dawar (Expert)

07 March 2009 It would like to highlight that the comments by Shahzad Sayyed are not entirely correct.

Following persons must mandatorily obtain registration:
1. every person liable to pay Service tax (i.e. in relation to transport of goods by road person who is liable to pay frieght; in case of import, the importer etc.)

2. An Input Service Distributor

3. Every provider of taxable service whose aggregate value of taxable service provided during the FY 08-09 has exceeded Rs 10 Lakhs (w.e.f. 1-4-08). (In other words, Service provider whose aggregate value of taxable service has not exceeded 10 lakhs are not required to obtain registration).

For every Service provider covered under bullet 3 above, a threshold exemption is provided to service provider whereby Service tax would not be liable to pay tax on value of service upto Rs 10 lakh (notification 6/2005 dated 1-3-2005 as amended from time to time).

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