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.
Message likes :
1 times
14 November 2012
1. Yes, You can get registration under service tax.
Message likes :
1 times
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.
Message likes :
1 times
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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
OR add as source on Google news
- Acquisition of a society by a company
- EPF withdrawal before 5 years and Disclosure in ITR-2
- Rebate Under 87A Issue
- Clarification on ITR 3: Is Sl. No. 64 required for 44ADA income?
- ITC Utilization on vehicle repair
- Transfer of immovable property without consideration
- Gratuity not yet paid shown in form 16
- FORM 115BAC
- HRA in ITR 2 FY 2024-25
- GST Applicability on Fair Price Shop Commission Income
- Mis report in excel format of hospital
- Updation Required
- Tax invoice in special case
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- GST on Restaurant service
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
- Filing GST Returns after death of proprietor
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
OR add as source on Google news
CAclubindia
