Please Help: Limit of 10 lacks for service tax
Posted Date : 08-May-2012 , 11:10:23 am | Posted By: Rishabh Upadhyay
Category :
Service Tax | Answers :
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Comments :
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If an assesse has taken service tax for two premises and not choose the centralised registration, how will the limit of Rs 10 lack be calculated, Will iot be aggregate ofr both units or for the each unit individually. Also in case it will be aggregate of both offices how will the return ST-3 will show the same. |
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Answers:
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 Answer by: Rishabh Upadhyay |
| To further clarify the question, MR A has taken service tax no. for two offices separately, one office is in haryana and another in punjab, Now the value of services rendered at two offices is Rs 7 lack and 6 lack. will the service tax be applicable??? and if yes then how, will it be proportnate or on either one of the unit. Please provide a concrete reply..
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| Answer by: PRIYANKA |
| Rishabh, once u take registration with the service tax department, then u cannot avail exemption of even a single rupee sale, nowadays, service tax department gets a declaration signed by you at the time of registration itself, that now u wont be claiming any exemption after getting registeration. so in this case service tax is leviable on both the units if they have got service tax registration no. irrespective of the amount of turnover.
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| Answer by: Rishabh Upadhyay |
| Thanks Priyanka. But are u sure about this that assessee is required to charge service tax from rs. 1 in case he is registered, As i am still of the firm belief that we can take service tax registration by will, but the liability to charge service tax will arise only after the basic limit of 10 lacks.
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| Answer by: PRIYANKA |
| No rishabh...i m very sure..as nowadays service tax dept gets a declaration signed by you before granting registration that u will charge service tax from the very first billing itself. if u want i can send u the scanned copy of that declaration form. U can msg me ur email id or notify it here.
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| Answer by: Rishabh Upadhyay |
| Yeah,, that would be really great of you, if u can send this declaration. My email.id is rishabh.upadhyay@gmail.com . As i have jst obtained a ST2 for one of my client, and no such separate declaration was required to be signed. Again thanks in advance
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| Answer by: Ashish Chaudhary |
| Taking declaration by department is practice followed at some commissionerate. As per law, service tax need not be charged till the value of service provided does not exceed Rs. 10 lacs by a service provider from one or more premises. Limit will be for both the units combined together.
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| Answer by: PRIYANKA |
| Hello rishabh..i have mailed u at ur id..pls check..n i have read all the answers here...but as we have to get that declaration signed we charge service tax from the very first billing..n as per direct confirmation from the service tax dept also...service tax needs to be charged from the very first billing once u have taken the registration.
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| Answer by: Rishabh Upadhyay |
| Hi priyanka, thanks for the mail. Yes , after reading the replies even i am of the view that it is a matter as decided by a specific commissionarate. I am dealing with commissionarate from Haryana (Panchkula), Chandigarh and Punjab (Mohali) an no such declaration form as sent by you was required to be signed.
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| Answer by: PRIYANKA |
| Well rishabh..I will inquire about the same directly in department...noida , ghaziabad and delhi too...then would reply here...bcoz service tax is a central tax and its levy cannot depend upon wish of some specific commissionerates...i.e, it has to be applied universally in the same manner everywhere...i was not aware that still at many places people are taking the benefit of ssi exemption even after getting service tax registration...i will definitely inquire about the same and would let u know...bcoz in a year or two after registration u will not face any problem but afterwards...at the time of assessment they can raise this point and levy tax , interest and penalty from date of registration.
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| Comments |
| Posted By : Amit Lath |
28-May-2012, 07:13:31 |
| I have not come across such declaration. Furthemore if we consider views of priyanka then provision of act would conflict. The need for registration arises once you cross the limit of Rs. 9 lakhs . If we consider the above view,Rs.10 lakh limit would become irrelevant,assesse would have to deposit tax from RS 900001
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