Service tax on computer assembling and servicing

Queries 979 views 3 replies

Ankit Goenka

IT Dealer

79 Points Joined February 2011

I have a computer shop in Shillong, Meghalaya - I would like to know - how can I

1. Application for Register for Service Tax
2. Requirement for registration for Service Tax (documents which might be required for registration)
3. Percentage of Service Tax Chargable
4. Would computer assembling be chargable? ie. if someone buys a desktop pc which we assemble (we charge VAT on items he has purchased) - how can we charge service tax on free assembling?
5. Maintain accounts for service tax - kindly confirm how can we maintain accounts for service? Considering we cannot make "x" units of service in our inventory and without making "x" units of service as a SUK how do we maintain accounts of the same.
6. Many inventory/POS softwares like BUSY and FUSION Retail are available for POS but none , I know of for maintaining service - Kindly help on this.
7. Exemption limit of service tax for FY 12-13 - and say if the exemption is Rs.10L. Can i charge service tax on services i provide up to 10% without being charged service tax by the department or how does it work?

I am not a person from Commerce and the subject of accounts is something which I do not understand - I am also speaking to a CA for my queries but I am sure if the members of this forum help me I will understand as much as I need to - run my business.

Thanks a lot in advance. Please help!

Replies (3)

Devendra

Chartered Accountant

4780 Points Joined March 2009

As per my knowledge, Service Tax is not charged on Assembly of Computers. Hence, no need to register under Service Tax and also no need to maintain accounts of Service Tax.

Regards,

Devendra Kulkarni

CA. Abhishek K. Pandey

Manager (Advance)

901 Points Joined March 2008

Yes. At Present, there is no service tax on assembling computer, but it will come under the scope as negative list of st has been intro in Finance Budget 2012. As per present rules, you need to get register only if the value of taxable service so provided is more than 9 Lakhs.

Ankit Goenka

IT Dealer

79 Points Joined February 2011

Thanks guys

and what about providing service/repair of computers - ie:
1. sold by us but out of warranty for which we charge servicing
2. not sold by us but we repair and charge service charge

also to back this - would it be under any documentation of the Service Tax Rules - plz mention Section /Subsection etc. so that i can get a jist of it and not be uneducated about it when questioned.

Thanks again....