Service tax registration for proprietary firm

Queries 335 views 11 replies

Dear Experts,

I'm planning to start a Proprietary firm in Chennai, Tamilnadu. I would like to start in a different name and not in my name. I entered into an agreement with a Company and I have registered myself as a Business Development Partner. I'll be rendering business development services by selling an android app to Schools and I'll be given a commission as % of sale value. Here are my queries:

  1. Under which section should I need to file for Service tax registration?
  2. Can I show my residential address as place of work? 
  3. Can I open a current account without any Service tax registration. If so, how?

Please clarify.

Thank you.

Srinivasan Siva Rao

Replies (11)

What will be your turn over till march, 2017?

Sir,

It won't be more than INR 10 lakhs for FY2016-17 but it will exceed for next FY. 

Regards,

Srinivasan Siva Rao

Why to register for Service tax before complience of 9 lakhs limit, when next year GST will be implemented!!!!!

Sir, please educate how to open a current account without any registration. How to start a proprietary firm then?

Just register with Shops & Establishment act, (Gumasta dhara), that's (along with PAN of individual) sufficient for current account opening.

Sir, thank you. Suppose if I plan to do this business in my own name instead of firm name, then how to open a current account? Pls reply. 

Your own name would be titled as Firm name!!!!!!!

Dear expert

I am ex-servicemen and getting 12000 as pension and last year I purchased one truck with GVW 11990 kg
plz guide me how to file income tax from these sources

Pension income to be declared under Salary, and Transportation income you may declare u/s. 44AE.

For only these two income along with any income from bank interest etc.; you may file ITR 4S.

But if you are also having the properitorship income as refered above, you may have to add it as business income and may file ITR 4S and/or ITR4

Basic limit as per slab would be same.

 

SERVICE TAX REGISTRATION


It is an indirect tax wherein the service provider collects tax on services from service receiver and pays the same to the Government of India. It is required for businesses providing services in India.

Service Tax Registration is mandatory for all service providers with a turnover of over Rs. 9 lacs. Failure to apply would attract penalties of Rs. 5,000 or Rs. 200 a day. Service tax registration is done through LegalRaasta.

 

Registration Process:

 

Service tax is the tax imposed by central government on those businesses who are providing or giving services to the customers. This tax is usually borne by the customers themselves. This tax is imposed on service providers for certain kind of services. Currently the service tax rate prevailing in India is 14.50%. Services like hotels, restaurant, movie theatres etc. Every business providing services to consumers have to obtain a service tax registration within 30 days of commencing its business.

It is not mandatory for every service providing businesses. It is mandatory for those business firms who have provided services amounting to Rs 9 lacs or exceeding Rs 9 lacs in previous financial year. Those firms who are not obligating these rules have to pay a penalty of Rs 100 per day which can exceed up to Rs 10,000 per day.

Documents required for service tax registration

Given below is the details of documents required for service tax registration:

  1. PAN card copy of the owner of the business entity.
  2. Recent Photograph and identity proof of the person filing the application which includes aadhar card, voter ID card, driving license etc.
  3. List of all the proposed directors of the company.
  4. Companies memorandum and articles of association.
  5. Details of the main bank account of the owner
  6. Approval is required from all the directors, promoters for the person who is filing the application. Without approval application cannot be filed.
  7. Various other documents such as import export code, state sales tax number, central sales tax number, VAT, CIN which is company index number.

 

Registration process

  1. Every business entity except in the state of Jammu and Kashmir is required to acquire service tax from its customers and pay to the government.
  2. Registration process starts with filling ST-1 form online. The business entities doing the registration first time have to create an account first. Following are the documents which have to be submitted:
  • Address proof
  • PAN card copy
  • Identity proof has to submitted which include aadhar card, driving license, voter ID card
  •  Statement of your bank account
  • Two photos clearly taken
  • Certificate of incorporation
  • Memorandum and articles of association
  1. If the authority is satisfied with the above mentioned documents then registration will be given to you in about 2 days of filing online form.
  2. The business firms can start paying their taxes online after receiving service tax registration certificate. This certificate will serve as the proof for every business firm.
  3. The above mentioned documents need to be sent through courier with 7 days for future purposes. Self attested documents can only be used for sending. Documents can be sent through speed post or registered post.
  4. The registration will be ceased if documents are improper or incorrect, if the address mentioned in the documents is not correct.
  5. After obtaining the service tax registration, business entities start paying tax online. The payment can either be made online or through cheques.

 

Non-payment of service tax

In case a service provider doesnโ€™t pay tax on time then a simple interest of 18% p.a is applicable. Penalty can also be imposed of amount 100 per day. The total amount of penalty cannot increase the amount of service tax due.

 

Other relevant points regarding registration

  1. Every applicant has to write its PAN No. on the registration form.
  2. It is also necessary to give your email ID and mobile number on the registration form

Time period of payment

The time payment period is quarterly in the case of individuals, proprietor and partnership.

The time payment period is monthly in the case of companies, trust or societies.


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