Service tax for proprietary firm

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If I run 3 consultancy firms. each firm annual receipt is 5 lakhs. and I am Proprietor of 3 firms. Kindly advice me, services tax apply on 5 lakhs or 15 lakhs?
Replies (4)

Proprietorship concerns' income is assessed as individual income of proprietor and ST is applicable as the aggregate crosses the threshold limit.

Dear Mr. Bandari,

ST is required to be paid only when the aggregate value of service exceeds Rs. 10 Lakhs in a financial year. But service provider is required to apply for Registration for ST within 30 days of his turnover exceeding Rs. 9 Lakhs.

Answer to your query: As per the above notification, 

condition (viii), the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.

Therefore, you are liable to take registration after crossing Rs. 9Lakhs and ST shall be payable on crossing Rs. 10Lakhs considering turnover of other premises.

 

Kindly go through notification no. 33/2012 ST dated 20.06.2012 for detailed understanding of Small Service Provider exemption.

https://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2012/st33-2012

 

 

Ohh, very nice advice. Thanks sir

As totally agree with @ Poornima Madhava 

 


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