Plz answer very practical problem .....

one of my client uses the services of storage tank charges for storing oil & paying service tax on such charges........such storages tank charges are fixed cost for my client.....however my client uses this  storage tank for storing the oil of other party and charges storage tank charges from party with some profit ....my question is WHETHER THEY ARE LIABLE TO REGISTER THEMSELVES UNDER SERVICE TAX FOR THIS ACTIVITY.....

IF YES UNDER WHICH SERVICE......

PLZ PARTICIPATE...

Replies (9)

Yes they should register under Storage & warehousing services accounting code for this service is 00440193

Originally posted by : shushantsinghal

one of my client uses the services of storage tank charges for storing oil & paying service tax on such charges........such storages tank charges are fixed cost for my client.....however my client uses this  storage tank for storing the oil of other party and charges storage tank charges from party with some profit ....my question is WHETHER THEY ARE LIABLE TO REGISTER THEMSELVES UNDER SERVICE TAX FOR THIS ACTIVITY.....

IF YES UNDER WHICH SERVICE......

PLZ PARTICIPATE...

yes, when they are availing storage tanks on hire, then bills are submitted to them, same pattern of input services  should be applied for the output services,

they have to register themself with department and discharge duty liabity

Yes they should register

If your client has crossed the threshold exepmtion limit which is Rs. 10 lacs as per the Notification 8/2008 dated 1.03.2008.

After the registration, your client should charge the Service Tax on the Total Bill amount (i.e. the actual expenses + his profit) to the clients. and they can take the credit of the Service Tax paid on their Expenses and the difference has tobe paid by them which is collected from the party.

Originally posted by : Sushma Mevacha

If your client has crossed the threshold exepmtion limit which is Rs. 10 lacs as per the Notification 8/2008 dated 1.03.2008.


After the registration, your client should charge the Service Tax on the Total Bill amount (i.e. the actual expenses + his profit) to the clients. and they can take the credit of the Service Tax paid on their Expenses and the difference has tobe paid by them which is collected from the party.
 
Originally posted by : Sushma Mevacha

If your client has crossed the threshold exepmtion limit which is Rs. 10 lacs as per the Notification 8/2008 dated 1.03.2008.


After the registration, your client should charge the Service Tax on the Total Bill amount (i.e. the actual expenses + his profit) to the clients. and they can take the credit of the Service Tax paid on their Expenses and the difference has tobe paid by them which is collected from the party.
 

Consequent upon increase in threshold limit of exemption from Rs.8 lakh to Rs.10
lakh, notification No.26/2005-Service Tax dated 07.06.05 and notification No.27/2005-
Service Tax dated 07.06.05 have been amended to raise the limit for obtaining service tax
registration
from Rs.7 lakh to Rs.9 lakh.

yes need of registration

Yes,there is a requirement for the registration.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
14 August 2026
Article Assistant CA Articleship

Eshwar & Co Chartered Accountants - Nungambakkam

Chennai

CA Inter

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details