Registration under service tax
This query is : Resolved
12 November 2012
can we get registered under service tax if it is an exempted service if its not possible then in which category a sole proprietor should register to become a legal entity? plzz suggest
13 November 2012
Current Account with a Bank should serve your purpose.
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14 November 2012
1. Yes, You can get registration under service tax.
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14 November 2012
thanxx.. then what will be the liabilities under service tax? do we have to file return?
14 November 2012
Yes!
Periodical Return will be e-filed though business has been conducted or not.
In order to have an identity as a PROPRIETOR to get registered with Service Tax is not an ideal one, otherwise you are MASTER of your own ways/will.
Periodical Return will be e-filed though business has been conducted or not.
In order to have an identity as a PROPRIETOR to get registered with Service Tax is not an ideal one, otherwise you are MASTER of your own ways/will.
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15 November 2012
if we have to become a legal entity what other things can be possible for a sole proprietor?
20 July 2025
1. Can a Sole Proprietor Register under Service Tax if the Service is Exempt?
No mandatory registration is needed if your service is completely exempt from service tax and your turnover is below the threshold (usually Rs. 20 lakhs).
However, you can voluntarily register under service tax if you want to get a Service Tax Registration Number (STN) for business purposes, like dealing with clients or bidding for tenders.
But keep in mind, if you register, you are required to file service tax returns periodically even if you have no taxable service or turnover.
2. What Are the Liabilities if You Register Under Service Tax?
You must file service tax returns quarterly (even if no tax is payable).
You must maintain proper records and comply with service tax rules.
If your service is exempt and you have no taxable turnover, you won’t pay tax, but filing is still mandatory.
3. How Does a Sole Proprietor Become a “Legal Entity”?
A sole proprietorship is not a separate legal entity; the owner and the business are the same legally.
If you want a separate legal identity, you can consider:
Registering a Private Limited Company (separate legal entity, limited liability)
Registering a Limited Liability Partnership (LLP) (limited liability with partnership flexibility)
Registering a Partnership Firm (not a separate legal entity but recognized under law)
Otherwise, the sole proprietorship itself can function legally by:
Obtaining business licenses
Opening current bank account in the proprietorship name
Registering for GST or other applicable taxes
Getting a Shop and Establishment license or other local registrations
No mandatory registration is needed if your service is completely exempt from service tax and your turnover is below the threshold (usually Rs. 20 lakhs).
However, you can voluntarily register under service tax if you want to get a Service Tax Registration Number (STN) for business purposes, like dealing with clients or bidding for tenders.
But keep in mind, if you register, you are required to file service tax returns periodically even if you have no taxable service or turnover.
2. What Are the Liabilities if You Register Under Service Tax?
You must file service tax returns quarterly (even if no tax is payable).
You must maintain proper records and comply with service tax rules.
If your service is exempt and you have no taxable turnover, you won’t pay tax, but filing is still mandatory.
3. How Does a Sole Proprietor Become a “Legal Entity”?
A sole proprietorship is not a separate legal entity; the owner and the business are the same legally.
If you want a separate legal identity, you can consider:
Registering a Private Limited Company (separate legal entity, limited liability)
Registering a Limited Liability Partnership (LLP) (limited liability with partnership flexibility)
Registering a Partnership Firm (not a separate legal entity but recognized under law)
Otherwise, the sole proprietorship itself can function legally by:
Obtaining business licenses
Opening current bank account in the proprietorship name
Registering for GST or other applicable taxes
Getting a Shop and Establishment license or other local registrations
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