Service tax liability

if gross receipt exceed rs 10 lakhs then registeration compulsory otherwise not

Originally posted by : valji
	if gross receipt exceed Rs. 10 lakhs then registeration compulsory otherwise not

AGREED              

Service receiver has no responsibility for non-payment of tax by service provider.

Legally service provider is liable for technical services to register and pay. As a tax compliant co you may officially write tohim that once he crosses Rs. 9 lakhs he is required to register and pay once the receipts [ upto 1.7.2011 + billing after that date cross 10 lakhs.

Some companies take a declaration from the service provider on a yearly basis that he is not liable for ST and if liable he would regsiter.