Service tax

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Amrut

Student

67 Points Posted on 06 June 2012

If a new firm is created and part services are performed from the new firm. The registered premises of the firm is the same as the old firm. The constitution and the partners of the firm are also the same.

Eg. services for the period 01-04-11 to 30-09-11 - Firm ABC

and services for the period 01-10-11 to 31-03-12 - Firm XYZ

Will the sales of both the entities be merged for the purpose of computing value of taxable Services?

Replies (2)

CA Akshay Yetiwar

231 Points Posted on 06 June 2012

this transaction or this process clearly depicts a picture that you have made such arrangement... ie. to book receipts under service tax under two different firms in the same year.... just to avoid the applicability of service .

the service tax officer can very easily trace it out... as both the firms are almost same.

so it will create difficulty for you.

As per my view its not proper.

there are chances of clubbing

Amrut

Student

67 Points Posted on 06 June 2012

The old firm is not registered. in order to avoid all the compliances, new firm is established and services for 6 months are carried out through new firm. the total of services provided from old firm is less than 9 lakhs. The new firm has exceeded the limit of 10 lakhs.

Then in such case is there any risk of default.

Thanks!!