Service Tax

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This query is : Resolved

CA. Varun Soni (Querist)

19 September 2007 If a chartered accountant in (J&K) provides any taxable service outside the state of Jammu & Kashmir. Will that service be taxable? Since the service tax is destination based, According to me that service will be taxable. But can he claim exemption provided to small service providers i;e Rs 800000/- If yes then how will we calculate his gross receipts.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)

20 September 2007 Yes, 8Lac is gross taxable turnover, therefore if he provides taxable services of more then 7 lac, then he has to register himself.

R.V.RAO

R.V.RAO (Expert)

20 September 2007 ANY SERVICE PROVIDER IF HIS ANNUAL GROSS SERVICE RECEIPTS (FOR SERVICES PROVIDED BY HIM)EXCCED RS. 7 LACS HAS TO REGISTER HIMSELF UNDER SERVICE TAX ACT.
BUT HE IS NOT LIABLE TO CLAIM SERVICE TAX @ 12 .36% FROM HIS CLIENTS AS LONG AS HE DOES NOT EXCCED RS. 8 LACS ANNUAL GROSS SERVICE RECEIPTS.
AS THE SERVICE TAX ACT IT SELF IS NOT APPLICABLE IN J&K, HOW CAN HE REGISTER HIMSELF THERE?
HOW THEN CAN HE FILE THE RETURN OR DEPOSIT TAX?
AND THE QUESTION IS IF HE IS SERVING ALL INDIA CLIENTS IN WHICH STATE DOES HE REGISTER HIMSELF UNDER SERVICE TAX ACT?
THE QUERIEST NEED TO BE CLEAR ON THESE BASIC ISSUES.
C.A.R.V.RAO

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