Service Tax

Since legaly both are difference companies both should get the excemption if it satisfies other conditions

Regards

Dayananda

yes, both are different assessees with separate registration number and certificate.

prudent way of tax planning, it seems !!!

There is no provision for clubbing two entities under service tax. The exemption has been rightly availed by the both the entities.

Different legal entities separate exemption. Maybe you could keep Mc Donalds case in mind where using of dummies/ colorable devices may lead to finding out who is behind and if reason only to avil the exemption there maybe some issues.

Even Kishan can be a partner of third entity a partnership firm. The exemption of Rs.10 lacs would be available to the partnership firm as well.

Respected Sir,

One more Question,If  name of propritership form and new Private Company are same,than answer will be change or remaining same..Propritership form is already closed.

as both have diff PAN, and registration is based on PAN, so both are diff identity for department.

if you are afraid of department, furnish the PAN copy of other signatury director alongwith company PAN

Common name may not be a problem.