St for travel agency other then tour.

Queries 396 views 1 replies

Respected Sir/Madam,

 

 

One person is operating travel agency, that is, he has got 50 cars and van which he has given to IT/BPO/KPO,

 

He was given the payment after TDS,

He mentioned service tax in Invoices,

His taxable amount is well beyond margin of 10,00,000/-.

He is not registered for ST,

 

Now he wants to apply for ST,

 

But all the while he has paid his income tax, showing income from Business.

 

Question is : -

 

Will there be any problem for running the business without paying the ST for so long,?

 

If he makes ST registration showing it to be an new company, is there any chances of his previous untaxed amount to be taxed?

 

Does he has to pay ST on 40% on total turnover ? Or 40% of taxable income beyond 10,00,000 margin.

 

 

Thanks in advance.

 

Surya

Replies (1)
Yes there is problem to run business without paying ST. He has to pay ST for these services but he can claim the exemtion of 10 lakhs if his services amount in previous year is less than 10 lakhs. You have to register your self via ST1 form and you have to half yearly file your return in ST3 form. You were to pay your service tax amount every month otherwise it would be paid with interest.In your case you have to pay interest on the ST amt which is over and above the 10 lakhs of service amount and you have to pay penalty for late filing of ST return.


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