Service Tax

Respected Sir,

I have one question about Service Tax  1st time exemption  of  Rs. 10 Lakhs.

First we are open a Proprietership firm, who's propriter Mr. Kishan applied for registration under Service Tax and get these Rs. 10 lakhs  exemption.

After sometime Mr. Kishan  Closed the propritership firm and and surrender Service Tax no. to Service Tax Deptt and clear all dues.

After that, Mr. Kishan  appointed as a director in newly incorporated Private Company and again applied for service tax registration under the name of Private Company an again company get exemption of  Rs. 10 lakhs.

Right Now, my question is that,

If same person get exemption of Service tax (Rs. 10 lakhs) in both cases is leagly valid or not under  "The finance Act 1994."

Replies (8)

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.
 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details