suresh (proprietor) 03 May 2011

service tax exemption

Dear Sir,

I run proprietor concern organisation and iam into sales and services. I have VAT registraton but i do not have Service tax registration. I take "Annual maintenance agreement" (AMC)s. When i checked with my tax consultant regd. service tax registration, he said it is applicable only for the people who make turnover above 8 lakhs. Infact mine is not that big company. But my clients are asking for service tax registration number.

1. Can i apply service tax on AMCs without registration.

2. If so how do i pay this tax amount without registration Number

3. To which account it has reach

4. If i submit bills without tax amount client is not accepting.

Suggest me what to do

Regds

Suresh

Reply Follow

4 Replies

(Guest)

First you apply for PAN for your Proprietorship.Then you may apply for service tax registration certificate.

Your PAN no is your service tax regiatration No

suresh (proprietor) 03 May 2011

Sir, Thank u very much for immediate reply. As a proprietor can i use my PAN card for Service tax or else need to apply on company's name only.

Regds

Suresh

V.A.A.Ravikumar (Advocate and Indirect Tax Consultant) 05 May 2011

Sir,

The turnover upto 10 lakhs is exempted from service tax purview. However, according to you, your clients want a S.Tax Reg. It may be because they want to take credit of service tax paid to you. In such an event you should take registration from Service Tax Department (apply in form ST-1). But the PAN number is not automatically deemed as Service tAx registration number. The service tax Reg.No. will be issued by the Service Tax Department in the form ST-2. The number to be given by them, ofcourse, is the PAN number plus ST 001...etc.

As soon as you get your registration number, you are required to follow all the formalities under Finance Act 1994 as amended read with Service Tax Rules. You have to file Returns even if you do not receive any service tax. ...etc.