DEAR ALL
1 OF MY CLIENT STARTED HIS BUSINESS IN 1998. HOWEVER, HIS GROSS RECEIPTS WERE LOWER THAN THE SSI EXEMPTION LIMIT FROM TIME TO TIME FOR ALL THESE YEARS. CLIENT DID NOT APPLY FOR SERVICE TAX REGISTRATION.
NOW THE CLIENT APPLIED FOR THE REGISTRATION & GOT THE SAME. THE DEPARTMENT ASKING THE DATE OF COMMENCEMENT OF BUSINESS.
IT SAYS "THE BUSINESS BE REGISTERED WITHIN 30 DAYS FROM THE DATE OF COMMENCEMENT OF SERVICE PROVIDING ACTIVITY OR WITHHIN 30 DAYS OF WHICH LIABILITY TO REGISTER ARISES.
THEY MAY LEVY PENALTY OF Rs. 5000/- FOR LATE REGISTRATION. CAN WE TAKE STAND OF "GROSS RECEIPTS BEING BELOW SSI LIMIT & HENCE NO LIABILITY TO REGISTER" AND SAVE OURSELVES FROM PENALTY PROVISIONS?
PLZ ADVISE
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Late registration of service tax code
Replies (3)
Hi Parag,
Registration Limit is Rs. 9,00,000/- and exemption limit is Rs. 10,00,000/- for small scale service providers (Notification No. 8/2008 01.03.2008 w.e.f. 01.04.2008). Please note that this limits are specially granted to Small scall service providers as a general exemption. When you are under these limits you are not liable for taking registration and exemption is your statutory right. No service tax officer can levy penalty to you for belated registration when you are not supposed to take registration.
However, you must check from your end, what is the total gross turnover of your business in the year in which you applied registration. If total turnover is higher than these limits, you need to apply for registration from the date your turnover exceeds these limits.
Warm Regards.
Hello Gautam
My client's case is of totally voluntary registration. receipts do not exceed as on date for FY 2011-12. But its likely to exceed 9,00,000/- so as safe side client got registered.
Hi Parag,
If you are applying voluntorily then need to worry at all. Date of starting of business is relevant to you and there can not be a case of late registration so be free from any worries.
Hope your queries got solved.
Warm Regards.
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