service tax no. for Recruitment consultancy business

Service Tax (Legacy) 1631 views 6 replies

Smita

service

41 Points Posted on 16 January 2008

Dear Friends,

I seek an advice from the experts for the below query.

1. I want to start my own recruitment consultancy and would like to operate from my residence, since i intend to start on a very small platform, not expecting to cross the turnover beyond 7 to 8 lac.

2. Pls let me know do i need to get the service tax no. for my business which willbe sole properitory concern.

3. As some one adviced me i dont need it till i cross 7 lac turnover in the financial yr, if this is true then does it mean while invoicing my client i dont charge them service tax?

4. If in case i happen to cross my turnover beyond 8 lac, then do i need to get the service tax no. and pay the ST for the Income i earned months back in the same financial yr. ( will i have to pay from my pocket as i would have not charged my clients for the same.)

5. pls help me understand as what exactly i have to do, is it that i need to compulsary take the service tax no. right now? pls advice how can i manage it?

Replies (6)

Nagaraju Pogula

Partner

175 Points Posted on 16 January 2008

Hi, 1. Yes you have to get registered under Service tax as u r expecting aggregate value of services beyond 7 laks. (See the 2. Govt has given exemption of payment of service tax if, the aggregate value of service does not exceed 8 lakhs only. If your taxable services value exceeds beyod 7 seven lakhs do you pay from u r pocket, No. So, Once you started providing services u have to invocie with service tax olnly. Even thouh those u r service value below 8 laks. So get registration No. onder ST

Smita

service

41 Points Posted on 16 January 2008

thanks for your inputs, this was really valuable peice of info for me.

Raju K. A

service

89 Points Posted on 16 January 2008

1.As per Notfn. No.6/2005, Govt has given exemption from payment of service tax upto a value of 8 lakhs in a financial year and you need service tax registration only if your taxable turnover exeeds Rs.7 lakhs in a financial year. 2. If your taxable turnover exceeds Rs.8lakhs, then you have to pay service tax only for the amount over and above 8 lakhs. You need not pay service tax for the previous months.