Service tax applicability

Queries 409 views 2 replies

Hi All,

Is Service Tax applicable during the current FY for proprietor if:

Sale Invoice (Business Income) raised is Rs. 8,98,000

Salary Transfer to Bank is Rs. 2,60,000,

But my employer didn't show me as an employee in his company and transfer the amount in my salaried account opened by employer which shows Salary Transfer from XYX. There is no benefit available to me like PF, ESI, Form 16 etc. etc. I have taken this amount as Freelance Business Income in previous year ITR.

My Last year Total Sale is Rs. 7,15,830 and Freelance Income (Salary Income) is Rs. 2,29,935 and STCG is Rs. 1,41,110

Is there Service Tax applicable to me in current year?

Thanks

Replies (2)

Hi Anil,

 

Service tax is only applicable on Taxable Service income. Based on the facts, it seems that you are not providing any service. Thus, there should not be any Service tax exposure on you.

 

However, sale of goods attracts VAT / CST, wherein you have to check the threhold limit (basic turnover limit, beyond which taxes are applicable) based on State VAT/CST Laws, in which such sales have been effected.

Thanks for your reply Vikas,

I am engaged in the printing work. I booked the orders from my clients in soft copy and making it presentable and get it printed and binded from outsource vendors and deliver the same to client. Sometimes client requires stationery items also.

Please guide me.....

Thanks

 


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