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Service tax basic exemption limit

Queries 3730 views 6 replies

Facts of the case are as follows:

Two service provider partnership firm are having same registered address.

Two partnership firm are having one common partner , so these firms are related parties.

Of these one firm already having service tax registration number & paid the service tax & file return regularly.

and other firm is new partnership firm come into existance.

Now, can new partnership firm take basic exemption limit of Rs.10,00,000/- of Turnover for not charging of service tax. 

OR

Turnover of both the firm will be considered for Service tax liability and new firm is liable to pay service tax from Rs.1 of service provided.

Kindly guide.

 

 

 

Replies (6)

a partnership firm has separate entity from there partners so dont be afraid you can enjoy your basic exemption limit on new partnership firm.

A & B are the partnership firm provided services Rs.900000/-   and A provided 900000/- and B provided 900000/- with in his individual capacity in partenership return 900000/- shown as income reminig amount is shown in partners individual retun now my quation is how much will be registration basic limit

 

A & B are the partnership firm provided services Rs.900000/-   and A provided 900000/- and B provided 900000/- with in his individual capacity in partenership return 900000/- shown as income reminig amount is shown in partners individual retun now my quation is how much will be registration basic limit

 

If partners are same in the both firm then turnover of both firm will be clubed for SSI exemption. 

Hello Everyone, 

I have some doubt in the above?

If the exemption is upto 9L and the partnership firm raise the invoice for the particular service is he give a Service Tax Invoice to the parties, 

is the partnership firm needs service tax number?

regards,

Rakesh

In your case, if you raised the service tax invoices then you should have to need the service tax registration or also deposite within prescribed time limit in Govt. dues otherwise you are liable have to pay interest thereon.

    


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