REGISTRATION UNDER SERVICE TAX

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Dear Friends,

Ours is Trading business under the tittle Pvt. Ltd.

Our Co. is not registered with Service Tax Authority.

Also we pay transportation charges above Rs.750/- (at a time)

Today, we came to know that if we are paying transportation charges above Rs.750/- at a time,we should get registered our co. with Service Tax Authority/Dept..

If yes, what will be the consequences if we are not registered ???

Also let me know who has to registered themselves under Service Tax Authority/Dept.???

Please explain briefly as I m little bit confuse..

Thanks,

PRITI RUPAREL

Replies (4)

Every person whose gross receipts or likely gross receipts of current financial year exceeds Rs. 9,00,000/-, such person is required to take registration as per Service Tax (Registration of specified class of persons). But such limit is not applicable in case where person are liable to pay service tax under reverse charge as in your case, then such person have to take registration within 30 days.

There are some conditions under goods transport agency regarding who pay service tax. like: tax on  service of  "Transport of goods by road", tax is payable by person who pay the frieght of service if consignor or consignee is company registered under company act, 1956.

 

It means if you are paying frieght you have to pay service tax, and you have to take registration with in 30 days from such date.

 

Others exemption

1) ST exempt when provided in relation to transport of fruits, vegetables, eggs or milk.

2)  if services provided other than transport of fruits, vegetables, eggs or milk and any of following condition is satisfied:

a) when gross amount charged for an individual consignment is upto Rs. 750/-, or

b)When gross amount charged for all consignements carried in a goods transport carriage is upto Rs 1500/-.

Consequences of non-registration are stated as follows -

Any Person who is liable to pay service tax, or required to take registration, fails to take registration in accordance with the provisions of section 69 or rules made under this Chapter shall be liable to pay a penalty which may extend to five thousand rupees or two hundred rupees for every day during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;

 

 

The consignments where the consignment notes (LRS) are issued by the GTA and not the GT operator/ owner are liable. Ideal to compute the taxable services and on 25% of the same discharge the ST. Interest applicable wouldbe 13% per annum.

What are the charges to be paid to get Servcice Tax Registration Certificate?


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