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Need I register Service tax?

rajendra (student) (95 Points)

17 November 2010

I am planning to open outdoor advertising agency, initially I will start one roadside hoarding .I expected 8 to 10 k per month income from this nd yearly is 1to 1.2 lakh. Pls anyone guide me • Need I register Service tax? • What is service tax rate for Advertisement agency? • I heard from my friend income exemption of Rs 8 lakh is admissible to small service providers, is it right? • If this is true should I collect service tax from client or not on above income • On above service several charges comes like ,labour charge ,printing charge or monthly rent etc Service tax charges to all services or only on rent pls guide • rjbhosale @ yahoo.com

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13 Replies

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 18 November 2010

No need to register , if you are not recovering it from customers

Chinmay (Accounts Professional) (356 Points)
Replied 19 November 2010

Hi, Service Tax is applicable only after rendering more than Rs.10,00,000/*- taxable service.

BIJAY KUMAR MOHANTY (Firm) (26 Points)
Replied 19 November 2010

My client received one time payment this month with servicetax added to his bill by the receiver of service. How to deposit ST with Govt. Secondly, Does he needs registration as his turn over is below Rs.5 lakhs.?

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 19 November 2010

HI Bijay,

iN THE present case the service provider can not charge service tax as his turnover is below 10 lakhs. But if he is getting the payment along with service tax then either he should register himself under Service tax and deposit the same to the department or he should refund the tax amount to the customer to avoid any hassel afterwords.

For more clarifications you should consult a practitioner

Regards

Jeevesh Mehta

Service tax Consultant

9811617186

BIJAY KUMAR MOHANTY (Firm) (26 Points)
Replied 20 November 2010

Dear Mr.Mehta

Thanks Mr. Mehta. It means, there is no way that he can deposit the ST received by him one time with the Govt as a bonafide person instead of returning the amount to to the payee ?

Regards,

B.K.Mohanty

9885046845

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 20 November 2010

Dear Mr Mohanty,

Even if you want to pay the service tax for one time , then also you need to take the registration.

Regards

piyush (Artical) (31 Points)
Replied 07 December 2010

what is the procedure for registration of servive tax?

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 08 December 2010

Dear Piyush,

In order to register for service tax, one needs to file ST 1 with the department.

You can log on to www.aces.gov.in or may consult a service Tax Consultant for the said purpose.

Regards

Jeevesh Mehta

Service Tax Consultant

Ph: 09811617186

BIJAY KUMAR MOHANTY (Firm) (26 Points)
Replied 08 December 2010

I still feel that there must be some way for one time srvice tax received , be paid to Govt. without registration as it's govt. money and should be deposited with govt. Why should one be registered for one transaction even if threshold limit is not exceeded ? Can any body throuh light on this ?

B.K.Mohanty

sankalp (Tax Consultant ( Income Service Sale Tax )) (107 Points)
Replied 08 December 2010

After your service income cross 12 Lakh p.a belwo 12 Lakh not required !

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 08 December 2010

Originally posted by : BIJAY KUMAR MOHANTY
	My client received one time payment this month with servicetax added to his bill by the receiver of service. How to deposit ST with Govt. Secondly, Does he needs registration as his turn over is below Rs.5 lakhs.?

your client has charged the service tax contents in their bill unknowingly, coz the payer never pays any additional tax apart from whats charged in bill,
ask them to refund the amount to the customer, stating that they have availed exemption, so they are making refund of service tax,
single time payout to service tax will invite registration and maintanance of whole procedure for this single entry.

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 09 December 2010

If one recives the payment of service tax though not charged then the same can also be deposited under Section 73A. However better option is to retunr to the customer and keep evidence of having done so.

BIJAY KUMAR MOHANTY (Firm) (26 Points)
Replied 13 December 2010

Thanks Mr.Madhukar. It is better to refund to the payee because ultimately under, Sec73A(6) if the amount of ST so collected by mistake or otherwise is deposited with Govt., A cumbursome procedure has to be followed by the payee to get the refund from the Govt.