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Registration liability

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This query is : Resolved

CA TAHIR ALI KHAN (Querist)

26 April 2013 an individual who is receiving income under section 194C of the income tax act,on which TDS @ 1% is being deducted by the person who is giving payment to the indivudual,my quiestion is that whether the the individual is liable to get registered himself and also liable to pay service tax on the receipts .

CA Vikas Acharya

CA Vikas Acharya (Expert)

26 April 2013 depends, as what i can understand from your query is that the individual is a contractor.
now 1st of all if the service value is more than 9 lakhs during a year, yes he is liable to service tax registration.
yes he is liable IF he provides services more than 10 lakhs in a year.
now if he provides material too..
he is liable to pay tax @ abated rate 12.36% on 40%/60%/70% depending in his work, what he does.
or if he is not supplying any material and just doing the work on owner's material, then tax @ 12.36% on 100% value.

if you will give more details more clarification can be provided

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