Applicability of ST on an individual assignment

An individual who is a director of a private company, is taking an individual assignment in his individual name. The nature of assignment is 'Consultanty for rendering marketing services' and the value exceeds the threshold limit of Rs. 10 Lakhs. I would like to know the applicablity of 'Service Tax' for this assignment.

Regards,

R. Raman

Replies (6)

i think so

Hi Raman,

Absolutely Yes! Director and company are seperate persons and hes required to first  register and pay service tax on such transaction.

If hes earning commission income and promoting someone's goods or services then register under Business Auxiliary Service or if hes earning fees out of such transaction then register under Business or Management Consultant Service. Classification of service will depend on facts basis.

Regards.

Many thanks Mr. Gautam and If I am correct, he can also avail benefits for input tax.

 

Regards,

R. Raman

Welcome Raman.

CENVAT right always arises with the payment of Service Tax and so he can very well avail and utilse the same.

Thanks once again, Mr. Gautam.

Regards,

R. Raman

Hi, i agree with gautam joshi.  He is supposed to apply for registration when once he crosses 9 lacs.  And after availing first 10 lacs, he can start remitting tax.  For availing cenvat benefit, the input bills should be in the name of the individual and the same should not be related to output tax.

 

rengaraj r.k

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