Ostroff, Fair and Company
*Ostroff, Fair and Company>>>India Taxes

When a proprietory firm is liable to get service tax registration?


When a proprietory firm is liable to get service tax registration?

Well as soon as you start providing Taxable Services.

Though there is a general exemption of Rs. 4 Lacs, but it has lots of riders:

a. As soon as your taxable services cross 3 lacs you have to get yourself registered with Service tax Dept and start filing returns.
b. If in one year your turnover is more than 4 lacs, then you can not opt for this exemption in next year.
c. Benefit of Cenvat Credit is lost in case of exemption.

If you expect your turnover to less than 3 lacs every year then you may opt for this exemption and do not get yourself registered.

You have to weigh every pros and cons before taking any decision.

CA. Deepak Bholusaria
Kind of service you provide is the only criteria to determine your service tax registration obligation., how ever if your gross receipts are likely to be less than Rs. 4 lakhs then you need not opt for registration
Tags
United Kingdom Taxes Spain Taxes Singapore Taxes Mexico Taxes Ireland Taxes India Taxes Germany Taxes Canada Taxes Australia Taxes Small Business
Related information
  • What is minimum employment period for filing IT return in India?
  • Savings a/c in India earning interest . I live in US. How do I report interest income for tax purposes?
  • Tds rate on india &rules?
  • What amout of compansation I am entitled to get?
  • Is it mandatory to register our firm with the tngst act for export purposes?
  • Employer pays security deposit for employees house recoverable from the employee in 24 EMI .tax incident?
  • Is my returns from nsc investments taxable post maturity period. i am a sole proprietrix?
  • Is obtaining posession necessary to claim interest on housing loan as expense for income tax purposes?
    • 　

    Finance Categories--Copyright/IP Policy--Contact Webmaster