Tax Professional and in Service
1795 Points
Joined June 2009
Dear rahul,
For determining whether a person liable for service tax registration or not depends upon the value of taxable service provided during the last financial year. Taxable service also includes Service exported in terms of Export of service rules, 2005. There is no direct case law in support of this.
However CBEC clarifies by the circular no. 868/6/2008 dated 9.5.08 that exempted service includes non taxable service also. Further clarified that Export of Services without the payment of service tax are not to be treated as exempted service. Although the circular issued in support of rule 6 of the cenvat credit rules 2004, it equally applies to service tax as the cenavt credit rules are applicable for service providers as well.
With all the details mentioned above, it is much more clear that service exported is also part of taxable service and should be considered for determining whether person liable for registration or not.
In your case, value of services provided during 2008-2009 was Rs.12 lakhs, thus u had to get registration within 30 days from the date when aggregate value of taxable services exceeds Rs.9 lakhs in the financial year.
As per Section 77, failure to take the registration would attract the penalty which is higher of :
1. Rs.200 per day from the date when Value of taxable service exceeded Rs.9 lakhs till the date of application made for registration.
2. Rs.5000
It won't affect your IT return or assessment.
Regards,
Manoj
CAclubindia
