Question on service tax exemption

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Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2016 I am a small businessman providing service to a mobile phone service company called Karbonn and Maxx. My job is to provide service to customers of warranty handsets and I bill the same to Karbonn and Maxx Mobiles @ Rs. 60 to Rs. 80 per handset repaired. Annually I receive approx Rs. 4,40,000 (Four lac forty thousand) from the company as my remuneration after deducting 1% TDS.

Am I supposed to register for service tax and pay tax on my remuneration or will it be exempt under Service Tax. Please clarify.

CA Suresh Jain

CA Suresh Jain (Expert)

10 December 2016 You are not required to be registered under service tax

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2016 I still have a confusion...Please refer to the exemption notification no. 33/2012 which states "Provided that nothing contained in this notification shall apply to (1) Taxable services provided by a person under a brand name or trade name, whether registered or not, of another person...What exactly does this mean and will it apply to my business

CA Suresh Jain

CA Suresh Jain (Expert)

11 December 2016 You have contract with mobile companies and providing service to the companies and therefore this proviso is not applicable to you.

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2016 So, finally, am I supposed to register for Service Tax or not.

CA Suresh Jain

CA Suresh Jain (Expert)

11 December 2016 No you are not required to be registered

Querist : Anonymous

Querist : Anonymous (Querist)

12 December 2016 I have received a Notice from the Service Tax Department in this regard stating that we have to pay service tax wef 1-7-2012 including interest and penalty for non compliance. I tried to present the details of our business alongwith the TDS Certificates showing the amount as below 10 lacs but he is not willing to listen. He is not even interested in the opinions of the chartered accountants. The Superintendent has said, these are not the opinion of the Department. Can we get a reply from any senior person of the Service Tax Department stating no registration is applicable in this case. Any e-mail id with which we can correspond and get the answer to this effect so that we can present the same to the Department.

CA Suresh Jain

CA Suresh Jain (Expert)

12 December 2016 If the department has given you notice i.e. a show cause notice, please mail copy to us on group.blr@gmail.com

CA Suresh Jain

CA Suresh Jain (Expert)

12 December 2016 If the department has given you notice i.e. a show cause notice, please mail copy to us on group.blr@gmail.com

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2016 Email has been sent to the id mentioned

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2016 Still waiting for your opinion ...email sent to the id mentioned