Registration of a service provider??

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2013 Sir ,
A IT Engineer providing web developing services Wants to register As a company

Is he has to register only in the Service Tax
Act Or

Only Under Company Act
OR
Under Both Acts

CA Vikas Acharya

CA Vikas Acharya (Expert)
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25 October 2013 registration of company is basically depends on his business needs whereas registration of service tax is altogether a different thing. it basically is not as per need but as per mandatory requirement of law.
whether working as a co. or on individual or partnership basis.

so reg at service tax under service tax act is mandatory if crosses the taxable turnover limit of 10lakh in a year.
under co. act there no such strict condition.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 October 2013 Than what about the Income of business??

Can we show the income of a business without registration in any act in His personal Income by Business Name ???

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2025 Great question! Let me break it down for you clearly:

1. Company Registration (under Companies Act)
Optional — registering as a company is based on what the business owner wants.
If the IT engineer wants to run the business as a sole proprietorship, no company registration is needed.
If he wants a private limited company or LLP, then registration under Companies Act / LLP Act is mandatory.
2. Service Tax Registration (now GST regime, but as per your question’s timeline, service tax)
Mandatory if turnover crosses Rs. 10 lakh (or Rs. 20 lakh in some states) in a financial year.
This applies whether operating as a sole proprietor, partnership, or company.
3. Income Reporting (Income Tax)
Even if he doesn’t register as a company or for service tax, he must report income from the business on his personal Income Tax Return under "Profits and Gains from Business or Profession."
Business income can be shown in his personal PAN if he is a sole proprietor.
No separate company registration is mandatory just to show business income on tax returns if sole proprietorship.
Summary:
Registration Type When Required Notes
Company Registration (Companies Act) Optional, depends on business form Sole proprietorship no need
Service Tax Registration Mandatory if turnover > 10 lakh Applies regardless of company form
Income Tax Reporting Mandatory Income must be declared anyway
So to answer your last question:
Yes, the IT engineer can show his business income under his personal PAN without registering as a company or under service tax (if turnover is below limit), by filing ITR as a sole proprietor.

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