Service tax registration

This query is : Resolved

CA SMR (Querist)
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28 December 2010 Dear Experts,

is it necessary to apply for service tax registration even if the service provider hasn't exceeded the turnover limit of Rs 10 lakhs?The service concerned here is Advertising.

Regards,

Sukanya

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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28 December 2010 If amounts crossed to Rs. 9 lacs registration is compulsory.

CA SMR

CA SMR (Querist)
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28 December 2010 But as per Sec 69 & Rule 4 "Application for registration to be made by every person liable for paying the service tax in Form ST-1 within 30 days from the date on which service tax is levied or within 30 days from the date of commencement of business of providing taxable service, whichever is later."

Please explain that..

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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29 December 2010 As clarified by Mr. Shailesh Bhagat, if the total service tax payment on taxable turnover is likely to be less than Rs10 lacs, such service providers are treated as small scale service providers and enjoy general exemption from registration. However, this is subject to two caveats:
(1) On the turnover reaching Rs.9 Lacs, the service provider should get himself registered with the jurisdictional Service Tax Commissionerate.
(2) In case any service tax is collected by a small scale sevice provider, the tax amount so collected has to be remitted to the Treasury within due date, for which registration would be required.

As for your second query:
'as per Sec 69 & Rule 4 "Application for registration to be made by every person liable for paying the service tax in Form ST-1 within 30 days from the date on which service tax is levied or within 30 days from the date of commencement of business of providing taxable service, whichever is later."'

the date of commencement of providing taxable service would be deemed to be the date on which the taxable turnover exceeds Rs.9 lacs and the registration has to be done within 30 days therefrom.

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CA SMR

CA SMR (Querist)
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30 December 2010 Thanks

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