Service tax exemption limit on firm converted to a company

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S.Sudhishkumaar (Querist)

12 November 2013 we a firm lending service under commercial training and coaching and paying Service tax. we created a new company and same partners became directors in pvt. company and services under commercial training and coaching. the question is
1). whether the new pvt. company have to pay Service tax without basic exemption limit or can avail exemption limit?
2). Whether two Service Tax RC (firm and company) can be issued for same premises?

reply is urgent

Nikhil Kaushik

Nikhil Kaushik (Expert)

13 November 2013 1. Yes you need to take separate service tax registration. Same premise doesnt matter.

2. yes new company shall be covered separately under the small service provider scheme.

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S.Sudhishkumaar

S.Sudhishkumaar (Querist)

13 November 2013 sir may i know the sections or rules number

Nikhil Kaushik

Nikhil Kaushik (Expert)

13 November 2013 there are no separate sections. Its simple, a company has its own legal entity separate from its shareholders. You have to take service tax registration separately. For service tax purposes both the entities shall remain independent of each other for compliance purposes. Only for transfer pricing the relationships are considered.

S.Sudhishkumaar

S.Sudhishkumaar (Querist)

13 November 2013 sir i have informed from ST department that the partners of the firm (2partners) are the directors (2 directors) of the company so the exemption limit cant avail.

Nikhil Kaushik

Nikhil Kaushik (Expert)

13 November 2013 well I dont think there is any such regulations. I myself have multiple companies/LLP on same premise with common directors claiming the exemption.

However, lets see what other experts have to say on this.

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