Should go for registration of service tax no. for dharm kant

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2014 Dear Sir,
Thanks! in advance.
One of my client open DHARM KANTA (computrised WEIGHING machine cap. 60 tons). He is charging Rs. 40 per truck and approximately earned Rs. 1200-1300 in a day. Is he need to registered under Service tax act or vat or any other? And what will be tax treatment for ST Returns?
Please suggest.
Regards
Vikas

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2014 Dear Sir,
One of my client has opened DHARM KANTA (computrised capacity 60 tons). He is charging Rs. 40 per truck and approximately earned Rs. 1200-1300 in a day. Is he need to registered under Service Tx act or VAT Act Haryana or any other? And what will be tax treatment for ST return because of charging Rs. 40 per truck?
Please suggest early.
Regards
Vikas

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2025 Hey! Regarding the **DHARM KANTA (computerised weighing machine)** business charging Rs. 40 per truck and earning around Rs. 1200-1300 per day:

### Service Tax Registration:

* Service tax (pre-GST) was applicable only if the aggregate taxable services exceeded the threshold limit, which was usually Rs. 10 lakhs per year.
* Here, daily income is about Rs. 1,200–1,300, so yearly revenue would be approx Rs. 4.5-5 lakhs (1,250 × 360 days) which is below the threshold.
* Also, charging for weighing services is not typically classified under taxable services liable to service tax.
* So, **service tax registration may not be mandatory** for this activity.

### VAT Registration:

* Since it involves charging for services (weighing trucks) and potentially sale of goods, check whether Haryana VAT laws require registration.
* If the client is only providing weighing services (which is a service), VAT is generally **not applicable** (VAT is on sale of goods).
* However, if any goods are sold or transferred, VAT may be applicable.
* Confirm with Haryana VAT rules, but likely VAT registration is not required if only weighing services are provided.

### Other Tax Aspects:

* Income from weighing charges will be taxable under Income Tax as business income.
* No specific service tax returns need to be filed if registration is not required.

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### Summary:

* **Service Tax Registration:** Likely **not required** due to low turnover and nature of service.
* **VAT Registration:** Probably **not required** if no sale of goods.
* **File income tax returns as usual.**

If you want, I can help you check the latest GST laws, but this applies to pre-GST regime around 2014.

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Does this help? Would you like me to explain more about registration thresholds or related compliances?

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