Turnover and service tax

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One of the company had down their turnover as 72 lacs but they don't have service tax number and neither they charged service tax to clients, nor they paid service tax. But as per service tax act, we have to apply for service tax number after we complete the turnover of 9 lacs and charge service tax after we complete turnover of 10 lacs. So how this is possible to have turnover of 72 lacs and not pay service tax. Also to mention 72 lacs turnover is shown in service category only and not in product or goods.
Replies (5)

What is the nature of service they provide. It should be checked whether the same falls under negative list, exemption category. 

If the service falls under such category, no need to obtain Service tax registration even if it exceeds the threshold limit of 10Lakhs.

Its a private limited company providing IT services of website development and also they are aggregators of taxi services with mobile application..

Under Notification number 30/2012 as ammended by notification 7/2015, for few services reverse charge mechanism applies i.e service receipient has to deduct and remit the service tax amount. Aggregator service is one such service.

'aggregator' means a person, who owns and manages a web based software application, and by means of the application and a communication device, enables a potential customer to connect with persons providing service of a particular kind under the brand name or trade name of the aggregator.

Hence since this company provides service which falls under reverse charge mechanism, Service tax is not charged in the invoice and it is the responsibility of the service recipient to deduct, remit service tax.

 

But they have consultation charge and they should charge service tax on it.

Hi Sir,  

Refer that notification which i have mentioned in my above reply.

The legal services are also included under reverse charge mechanism, subject to certain conditions.

https://www.cbec.gov.in/htdocs-servicetax/st-notifications/st-notifications-2012/st30-2012

 


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