Please Help: Service Tax
Posted Date : 13-Sep-2011 , 01:51:04 pm | Posted By: Darshit Shah
Category :
Service Tax | Answers :
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Mine was a proprietorship concern till 4.4.2011. I have converted it in a partnership concern in on 5.4.2011. I was liable for paying service tax in my proprietorship concern. Now as i have converted into a partnership firm , I have to apply for fresh registration so will I eligible for exemption under SSI i.e. for first Rs 10.00 Lacs receipt, do i need to pay service tax? |
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Answers:
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 Answer by: Ashish Karundia |
| Dear Darshit,
Here, you do not have to take a fresh registration, instead you can go for amendment in the registration [Refer Section 69 of Finance Act, 1994 read with Rule 4 (5) of Service Tax Rules, 1994]. Further, you can claim the benefit of Rs. 10 lakh as per Notification NO. 6/2005-ST dated 01.03.2005 if in the immediately preceding financial year the aggregate value of services provided does not exceeded Rs. 10 lakhs.
Thus, You are not required to take fresh registration and you are not required to pay service tax on first 10 lakhs if the conditions set out in 6/2005 is met.
Hope this answers your query.
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| Answer by: Ashish Karundia |
| Dear Darshit,
It may be noted that here you are required to take a separate registration (as the person is changing from sole proprietorship to partnership) and accordingly you have to surrender the earlier registration certificate. Further, you can take the SSI exemption of Rs. 10 lakhs.
[ Special thanks to Surbhi Premi for letting me know the apparent mistake.]
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