Is tan & st mandatory for llp providing services only

I just incorporated a new LLP and I am a designated partner. My LLP will provide services like Website designing and developing Apps for smartphones. So in such nature of business, will I require to apply for TAN? My friend is suggesting me to apply but I do not understand why. Please suggest.

Secondly, I am not sure how much income I will make by the end of a year. So should I also apply for Service Tax Number (ST) right now from begining Or I should apply for ST only by the end of financial year on basis of my income value.

Please suggest which will be best for my LLP. 

Replies (4)

Dear Friend,

TAN is required if you have the liability to deduct tax and remit tax to the government. It is recommended to obtin TAN in the initial stages itself as you may not know when this liability might occur. 

Service tax registeration is to compulsory to be obtained initially. But on achieving a turnover of 9 lakhs it is mandatry to apply for registeration and collect and pay taxed on the turnover above Rs. 10 lakhs. So as soon as achieve a turonver above 6-7 lakhs you should cpnsider obtaining service tax registeration.

I heard that if I register for Service Tax at initial stage and start collecting service tax from my customer, then I will have to pay service tax even if my turnover is less than 9 lac. is it true?

But if I do not register for ST and I do not charge ST from my client/ customer and by the end of year my total turnover is also below 9 lac then I get exemption from ST and no registration is required. Is this correct? Please suggest.

One more important thing is - My LLP got incorporated in January 2015 so please suggest, will I have to file return this year (2 month left to March) or I can skip it to 14 months.

Dear Dev,

1. Service tax registeration and exemption are completely different things. Even if you register for service tax there is no requirement for payment of service tax until your turnover exceeds 10 lakhs.

2. Income tax filing for LLP is mandatory. Hence you will have to file the return of income even if you had registed the LLP in january..

 

Thanks, I have learnt some important things from you. 

Actually from above question what I mean to say is - since my LLP is registered on Jan 2015 so will I have option to close my financial year in 2016 instead of 2015.

Few minutes ago in some website I have read that: LLP registered from 01-10-2014 to 31-03-2015 have option either to close financial year as on 31-03-2015 or 31-03-2016 and to file both Form-8 & 11 accordingly.

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