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Service Tax

Kumar (Accountant) (224 Points)

12 September 2010

Service Tax: I am running a computer institute. I had taken voluntary service tax no as commercial education. I am not charging service tax on bill/ receipt. I want to know that is this right that I am not filling any return or charging service Tax? Also I want to know that what would be the procedure if I want to add more service in the existing service like placement + Education both. Suggest me.

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6 Replies

SUCHINDRA PARE (Lawyer) (80 Points)
Replied 13 September 2010

If your gross receipts in the year do not exceed the threshold 10 lakh limit you do not need to charge any service tax or file any return. But as soon as your gross receipts exceeds 10 lakhs in a financial year you should start collecting service tax from your customers/clients and deposit it to the service tax authorities.

If you wish to add placement and Education services as you have mentioned you may contact the authorities from where you have got your service tax registration certificate. They will issue you a new/modified certificate of registration.

Regards

ASHPAK ALI (C.A. STUDENT) (27 Points)
Replied 14 September 2010

plz. confirm

we are doing of infront party as job work.

the infront party give material on challan and we back to their material after provide

laboour plus material on their material. the infront party is local state.

and our gross trasaction is 72 lacs per year for the job work in financil year

plz. tell

should apply service tax or vat on none either?

plz. reply as soon as

sanjoy saha (student) (121 Points)
Replied 14 September 2010

Hello Kumar,

1.You service tax liability may be less than Rs.10lakhs , but you have to mandatorily file the nil return.

2.For adding education only ,you need not have to modify your certificate,as Commerical Training & Coaching Services includes computer training & education.

3.For providing placement which is under "Manpower recruitment agent's services",modification is needed.

Best Wishes,

Sanjoy.

sanjoy saha (student) (121 Points)
Replied 14 September 2010

Hi Ali,

I need some more information from you.

1) What Kind of upfront job you are providing ?

2) Is your materials that you are providing attract CENVAT duty?

3) Are you billing job & material together or separately?

Regards

Sanjoy.

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 14 September 2010

HI Ali,

See the basic question which comes into role under JOB WORK is whether the process undertaken by a job worker amounts to manufacture or does not amount to manufacture.

So kindly clarifffy the process done by you on the materials received from the supplier.

You can contact us at jeevesh @ mavenlegal.net or +919811617186 for more details clarifications as you total turn over is very high and penalty and service tax if applicable would be very high .

Regards

Jeevesh Mehta

Taxation / Corporate Law Consultant