Service tax registration

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PIYUSH PATEL (Querist)
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15 March 2016 Dear all I am working as accountant for builder, at where Advance received from customer is 950000 till today here i want to know that whether we should apply for regstration of service tax and what is the time limit for get registration and also guide me consequenses for not get registration of service tax with in time limit?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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15 March 2016 Within thirty days of the turnover exceeding Rs.900,000/- the service provider is required to get himself registered and to collect and pay service tax once the threshold limit is crossed i.e. turnover exceeds Rs.1,000,000/-.

The penalty for non registration is Rs.10,000/- plus Rs.100/- for everyday the default continues. The upper limit was to the extent of service tax sought to be evaded, but I am not certain whether the clause still exists.

Further, if the Department detects the evasion and issues a Demand-cum-show Cause Notice, the assessee would be liable for a penalty equal to the amount of Service Tax not paid, plus Late Fee of Rs.20,000/- per ST - 3 Return filed. A penalty of 1% per month of the Service Tax paid late can also be levied and quite often the Interest and penalty works out to twice the amount of Service Tax not paid or maybe even more (in view of the increased rate of interest from 1st October 2014.)

It is advisable for your company to get registered at the earliest, otherwise it will be a case of पकड़े गए तो चोर नहीं तो साहूकार.

PIYUSH PATEL

PIYUSH PATEL (Querist)
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16 March 2016 thanks for nice reply

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