Clarification in service tax

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This query is : Resolved

VIGNESH SC BOSE (Querist)

08 April 2014 An individual was running three proprietorship firms, whereas he registered Service Tax compliance for one of the proprietorship firm and did not for rest. Both were rendering similar services. Out of three firms two firms were closed including Service Tax registered firm. In the meantime he failed to pay service tax which he collected when firm was running and failed to file ST-3 return. Three firm’s turnover totals did not cross Service Tax exemption limit. He is liable to pay service tax which he collected when business was running.

1. Whether he is liable to pay total receipts of the ST registered firm?

2. Whether he is liable to pay total receipts of three firms?

3. What are the consequences and obligation will rise in failing to pay service tax collected and failing in filing ST-3 return?

4. Should he surrender the ST-2 certificate or else he can retain the registration with claiming exemption?

Nikhil Kaushik

Nikhil Kaushik (Expert)

09 April 2014 once the combined turnover of the services offered in these three proprietorship crosses, Rs 10 lakhs, the service tax is to be charged irrespective of the individual turnovers.

so he shall be liable to pay service tax on the combined turnover.

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