Arihant AC (Legal Advisor) 10 May 2011

Service Tax on Consulting

Dear Experts,

We are working as a Labour Consulting (to prepare PF, ESIC, FI, LO, Bonus, Gratuity, Contract Labour & all other Labour LAws related work). We are not providing the Employees to client. Our work based is to makining all related Labour Laws paper work at our own Office.

We want to know that whether we are laible for Service Tax? If so please get us some brief of it.

Waiting foy reply at earliest.

Regards,

Arihant

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2 Replies

Asha Pole (Legal) 10 May 2011

Since consultancy is a part of specified taxable service, even thou you're are not providing any labour to your concerned party comes under the ambit of service tax. So you ought to pay service tax on the services as mentioned above. Provided the aggregate value of the services should exceed 10 lakhs during the financial year, then you have to charge service tax on the bill and accordingly get the registration under service tax rules.

Shayan Khan (B.com) 13 May 2011

The services provided by you are covered under "Management Consultants" services and hence are taxable services.

However, u may claim exemption upto Rs. 10,00,000 in the current financial year if the value of taxable services do not exceed Rs. 10,00,000 in the previous year. it may be noted that the said exemption is optional. if the service provider is claiming the exemtion being a Small Service Provider, then he is required to apply for registration only if the VALUE OF TAXABLE SERVICES EXCEED RS. 9,00,000 DURING THE CURRENT FINANCIAL YEAR. however,the liability to pay tax arises only if the value of taxable services exceed Rs. 10,00,000.

Thanks