Can any one tell me, is it mandatory to get registered under service tax for a person who is a public relation consultant in one of the consulting firms . Her gross receipts has crossed Rs. 10 Lakhs for Previous year 2012-13 . Can she register for service tax now or if there is a delay then what is the fees / penalty she is liable to pay for ??
27 July 2013
Actually terms of engagement of consultant is not clear by your quary. is he/her engaged as salaried employee in consulting firm?
is remuneration received direct from public or from that firm? and in what manner? as salary or fees? (as gross receipts may be both) pls clear, so that quarry can be answered accordingly.
She is engaged as a consultant in one of the pvt ltd company (Sorry earlier,I mentioned it wrongly as a firm ) . She is receiving consultancy charges from company itself and TDS is deducted at 10% by the company u/s 194J.
27 July 2013
The Penal provisions of Service Tax Law are as follows:-
Penalty provisions for not obtaining Registration – A person who is liable to pay service tax, or required to take registration, and who fails to get registration under service tax, shall be liable to pay a penalty which may extend to Rs. 10,000 or Rs. 200 for every day during which the default continues (whichever is higher), starting from the first day after the due date, till the date of actual compliance.
29 July 2013
penal provisions are correctly mentioned as above, but there is condone provisions also available. Section 80 provides for non-imposition of penalty in certain cases falling under sections 76, 77 and 78 if there is reasonable cause for such failure.
as per service tax rules, when turnover crosses the limit of 9 lacs, the provider is need to get registration, and as and when his turnover crosses 10 lacs, he should start charging service tax.
29 July 2013
Thanks Sir, Pls help on below issues 1. The abovesaid client had crossed receipts of Rs. 9 Lakhs in pr year 2011-12 itself and Rs. 10 lakhs in March 2013 .But till now not registered so which date would be relevant for registration of service tax.
2. Can she claim benefits under VCES by registering now?
3.Can she collect arrears of service tax from co where she is engaged as a consultant from March 2013 to till date or she had to bear tax on herself.
29 July 2013
It is better to go to under vces scheme and pay the taxes and avoid penalty.
But you (she) cannot claim cenvat benefit in vces. After vces period you can regularly collect service tax for the services rendered. For the vces period, you cannot collect arrears now. For the first 10 lacs you can claim exemption.
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