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Service tax newbie firm

K.K.Vasan (Properietrix) (25 Points)

04 December 2011  

Hi,

We have a small firm which we started as manufacturing firm. We have completed Sales Tax Registration and are filing Sales Tax Returns. Our business model is to make some small electronic sub-assemblies for other electronic equipment manufacturers. However, we have off-late received some enquiries for providing design consultancy to other electronic equipment companies.

Our queries are as follows :

1. Should we register with Service Tax Office from day one of doing design consultancy?

2. If not, Upto what revenue level we can do business/billing of design consultancy, before it becomes mandatory to get registered?

3. Let us say, we have done a business of less than the limit/level prescribed by govt. In such a case, should we still register with Service Tax Office. Even if we need not register, can we still bill the customer without charging tax.

4. By some luck, if we reach the limit within the year, should we pay tax for all the invoices done during the year. If so, we may lose that much of tax from our revenue as we may not have collected tax till that point of time. How to circumvent this.

Looking forward to your kind responses.

Regards

KKVasan


 2 Replies

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 04 December 2011

.

HOPE YOU ARE HAVING A MANUFACTURING UNIT

YOU DO NOT PROVIDE ANY SERVICE, TO ANYONE

STATUS OF THE ORGANISATION IS NOT MENTIONED

IF YOU ARE HAVING THE STATUS = PRIVATE LIMITER,

YOU HAVE TO REGISTER UNDER

"Transport of Goods By Road Service"

AS

"Service Receipent"

.

1 Like

K.K.Vasan (Properietrix) (25 Points)
Replied 04 December 2011

Hi,

We are registered as manufacturing firm. We are properitry firm. We do not provide any service work right now. As mentioned we are having opportunities to provide design consultancy in electronics engineering fields


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