Service tax on minor

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This query is : Resolved

pankaj mittal (Querist)

03 October 2007 I have a property in minor name and have pAn allotted and income is clubbed with his parents. The rent received is more than 8 lakhs pa. Weather to apply for service tax in the name of minor or with that of parents. Since Income is clubbed as per ITax Act No such provision under service Tax. How to show his St returns if clubbed with that of his parents.

R.V.RAO

R.V.RAO (Expert)

03 October 2007 SEC 69 OF SERVICE TAX ACT SAYS EVERY SERVICE PROVIDER PROVIDING TAXABLE SERVICE NEED TO REGISTER UNDER THE SERVICE TAX ACT.
IN THE PRESENT CASE,IF THE MINOR HAS A PAN AND IF THE PROPERTY IS IN HIS NAME ,THE REGISTRATION AND RETURNS UNDER SERVICE TAX HAVE TO BE MADE IN HIS NAME.
BUT AS HAPPENS IN INCOME TAX ACT PAN APPLICATION AND IT RETURNS OF MINORS, ONLY THE MINOR'S GUARDIAN SIGNS ALL THE PAPERS (A MONIR NOT BEING COMPETENT UNDER THE LAW TO CONTRACT OR REPRESENT).
SO THE QUESTION OF CLUBBING DOES NOT ARISE HERE.THE REGISTRATION, RETURNS, PAYMENT OF SERVICE TAX EVERY THING HAPPENS IN THE NAME OF SERVICE PROVIDER ie monor IN THIS CASE.
R.V.RAO

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