Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

ST- New registration-When should I?

780 views 1 replies

Webhost

Owner

24 Points Posted on 28 May 2010

Hello everyone, I am planning to start a web hosting business. I see that the ST is 10.3% for this. I also see that service provider should apply for registartion within 30 days of the commencement of the buz. But it says if the business turnover is less than 9 lakhs its exempted from service tax.

During the initial period when there is no service tax reg no(STRN), shall i leave the STRN column blank or specify something else in the customer's bill? Will i be charging the service tax from the customers even before i get the STRN?

So, if am collecting service tax from my customers and at the end of the year if the turnover is less than 9 lakhs then i will be exempted from ST(am i right?), what shall i do with the amount collected? Please explain this in detail

Is it neccessary to register for service tax whatever the turnover is?

Am new to this. So my question will sound idiotic or meaningless. So please bare with me and explain me in detail

Replies (1)

Jeevesh Mehta

Advocate- Corporate Commercial & Indire

861 Points Posted on 28 May 2010

Service Tax is payable if your turnover exeeds 10 lakhs. that is to say if the value of services provided is less than Rs 10 lakhs in previous year are not required to pay service tax in current year till you reach turnover of Rs 10 Lakhs. One should take registration once he reach a turnover of Rs 9 Lakhs.

Now as regards charging service tax from your customer :- as long as you are not registered under service tax , you need not charge ST from customers, so no need to mention ST Number on invoice.

But if you are charging and collecting service Tax from customers without being registered with department irrespective of your turnover , you would be liable to deposit the same in the department and take the registratio. If not done so you may be caught and be penalized.

for any clarification you can call me

Jeevesh Mehta

Maven Legal LLP

9811617186