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Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2010 Dear Experts,

One of my friend is doing business of Labour Supply ( Installation & Commissioning) of Conveyors, Robots etc on Labour Rate basis. His FY 2009-10 gross receipts was Rs. 12,00,000/- approx till today he do not service tax no. and not applied for what is the procedure to take ST registration. What is the lib. of service tax. His current year turnover is Rs. 4,00,000/- approx.

please advise

thanks in advance

regards,

Jitu

CA Shishir

CA Shishir (Expert)

05 August 2010 Get registered under service tax. Start filing ST returns for current year. The problem will arise only when the officer looks into the last year's details. In the current year follow the service tax applicablity. If you are ready to pay the interest and penalty you can file the returns for the last year also. The taxable amount for last year will be only Rs. 2 Lakh

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)

05 August 2010 You need registration immediately after the turnover crosses 9 lakhs. Or if you starting a new business and sure about annual turnover will cross 10 lakh need to register with Superintend of central excise. You should register within 30 days of commencement of business.
For registration assesse should fill and submit a form called ST1.Now this can be done through ACES website. If you are providing multiple services,mention all those in ST-1 Take a printout and approach superintend under whose jurisdiction your company falls.

If you are providing a taxable service and your last year turnover is less than 10 lakh, you need not pay service tax in current financial year. Whenever you cross the limit 10 lakh your service is become taxable. i.e in your case last year turnover is 12 lakh, hence your service become taxable from the date on which you cross limit of 10 Lacs.

Penalty for non-registration is higher of below
1. Rs.5000 or
2. Rs.200 for each day till such failure continue ,starting from the first day after the due date , till the actual date of compliance.

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