13 January 2010
Hello People, I am a first time entreprenuer based in Hyderabad. I am opening a private limited comapany with 2 directors. We will be in the business of a gaming cafe where there will be video games and snacks. I have the following queries - 1. My annual turnover is expected to be around 8 lakhs pa, which doesnt come under the purview of service tax. So should i still register myself under service tax or should i wait till the company has a turnover exceeding Rs. 9 lakhs?
2. I am aware i will have to pay VAT on the food and beverage sold in the cafe. I am expecting a sale of Rs. 3 lakhs pa from it. So my question is how am i supposed to pay the VAT on this sale? And when should i register myself with the VAT authority?
3. As a private limited comapny and based on the nature of my business, is there any other regulation under which i should register my business?
I would be very thankful if these doubts of mine can be cleared by the experts panels.
13 January 2010
On the face of it, the activity is not covered under service tax. If service tax is to be paid, registration should be taken when the turnover reaches 9 lakhs.
CAclubindia
