Service tax for proprietorship firm

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2012 We are a proprietorship firm only receiving service from manpower contractors and does not provide any service to anyone but from 1/7/2012 latest notification service receipeint also had to deposit service tax partially.

Now I want to know that is there is any exemption that if a firm is proprietorship then they are not liable to deposit service tax and only service provider has to deposit.

And if no then we will deposit service tax in which name our own business or in the name of contractors i.e.challan should be filled in the name of our co. or contractors?

Please reply ASAP.

RENGARAJ R.K

RENGARAJ R.K (Expert)

31 August 2012 As a service receiver,for sole proprietors there is no liability under reverse charge. Only body corporate/business entity is liable to pay for the services provided by parties either partially or fully. So, when your output service tax turnover is below 10 lacs, there is no need for even registration.

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2012 thanks for the reply.

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