Service tax

Dear Nirmit, firstly you are to apply for PAN card in your name if you are running this as individual person. Then you are to take registration of service tax. Only these registrations are required for your academy.

Thanks Mr. Vivek for giving your precious time to my question.

Further, I would like to clear few doubts.

My fiancée is the only honor of the "Shivam Academy" and she already owes PAN in her name (not in the name of academy).

1. Do she need to apply for PAN card in the name of "Shivam Academy"?

2. Service tax registration should be in the name of her or academy?

3. She runs this academy since 2004 so how do she file old taxes?

Waiting for your reply.

Thanks & Regards,

Nirmit

Dear Nimit, Your sister is already having PAN so she need not to apply for it. Your sister is also not required to take separate PAN in name of shivam academy. You can also take service tax registration in your sister name or in name of Shivam Academy. It will not make any difference. According to my suggestion you are to apply for service tax when taxable services provided by you exceeds Rs. 9 lacs. And you are also not liable to old Service tax if taxable services provided by you had not exceeded Rs. 10 lacs. I think your query is resolved now. If you have any further query please respond.

Thanks Mr. Vivek.

First of all let me clarify this she is not my 'sister' but she is my 'Fiancée'

If Rs. 9 Lakh is the limit then no need to worry since her annual earning is below 3 lakh.

Now, my question is; do we need to file "NIL" return in service tax like "Income Tax"?

How can she prove that she is running "Shivam Academy" on paper? Since she needs to prove this before Canadian embassy?

Thanks in advance.

Regards,

-Nirmit

Dear Nirmit, Sorry for my mistake because i have read your first article before 1 day so it was somewhere in my mind that she is your sister . Sorry once again. You are not to take service tax registration but if you want to take it you can take but it will be costly for you to file return half hearly. My opinion is that she can prove her academy with the help of income tax returns. She should show her income under the head PGBP with the name of Shivam Academy. I think that will be enough as you are required.

Thanks Mr. Vivek for providing such fine information.

She want to open a bank account in the name of "Shivam Academy" so she can manage our accounting book and file returns under PGBP but to open an account, bank asks for Trade License which is a mandatory document to open a bank account.

How to get 'Trade License' since she is running this academy at her home. and from where?

Thanks

Regards,

-Nirmit

Sir, In your case i think license is not mandatory so you should say to bank that how you can arrange it if it is not required for your business. I think bank should take a affidavit from your sister that she is the owner. In case of partnership firm we are required to give deed and in case of company MOA is given. You should convince your bank to open current account in name of shivam academy with that affidavit.