Service provider

Queries 875 views 5 replies

There is an individual who's providing courier , cybercafe n recharge services n his Gross receipts from total services is less then 900000. Practically the services are taxable but service tax registration is not mandatory. So the person has not enrolled for service tax registration. 

i wanted to ask whether the service tax will be charged from customers or not? 

Replies (5)
Well according to exemption notification 6/2005 in any financial year aggregate of first Rs.1000000 worth of gross recipts are exempt form service tax provided the aggregate of gross value charged of services provided in previous year do not exceed 1000000. So in ur case services shall be exempt and hence no ST shall be collected from customers.

He may not be eligible for basic exemption of Rs.10L if courier business is under the trade name of another as franchisee.

I agree with Nair Sir

One can wait towards Registration of Service Tax uptill its turnover does not reaches Rs. 9 Lacs and should charge Service tax for turnover above Rs. 10 Lacs provided your turnover for last F.Y. was also below threshold limit.

SO BELOW 9 LACS,REGISTRATION IS NOT COMPULSORY.

SERVICE TAX LIABILITY ARISE WHEN GROSS RECEIPTS EXCEED 10 LACS...

hi i have one query .. if u can answer please,.....

 

is a new serivce provider eligible to get exemption under dis ?? if yes dn why ?


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