Is service tax applicable to pawn broker business?

Hi

Could any one tell me that,

Is Service Tax applicable to Pawn Broker business, carrying individually?

 

Thanks,

CA Sridhar.



 

Replies (4)
If the pawn broker is registered money lender than the interest he collects is exempt. But if he collects other charges ( other than Interest) the same is taxable under banking and financial services.
If the pawn broker is registered money lender than the interest he collects is exempt. But if he collects other charges ( other than Interest) the same is taxable under banking and financial services.

Is Service Tax applicable to individual? Because the the definition of taxable service is not covered individual.  

“Taxable Service” means any service provided or to be provided to any person, by a banking company or a financial institution including a non-banking financial company or any other body corporate or commercial concern, in relation to banking and other financial services;

Dear Mr.Shridhar,

You are referring to an old service tax regime. Service tax law has undergone paradigm shift from the selective approach to the negative list based approach of taxation of services with effect from 01.07.2012. Now only those services which is there in negetive list is out of service tax scope and rest all services are taxable.

Definition of service  "service" means any activity carried out by a person for another for consideration, and includes a declared service"

As regards services provided by Individual, the only shelter available to them is SSI exemption i.e. turnover of your business in preciding financial year does not exceeds Rs.10Lacs. If turnover is above Rs.10 Lacs than service tax is applicable.

 

I hope above will clear your doubt.

 

Regards

Dharmesh

8898507555

 

 

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