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TMI BlogService-tax-liability for proprietor-of-1-regd-business started 2nd-unregd. businessX X X X Extracts X X X X X X X X Extracts X X X X ..... Service-tax-liability for proprietor-of-1-regd-business started 2nd-unregd. business X X X X Extracts X X X X X X X X Extracts X X X X ..... n 1 lac in FY 2016-17 In January'2017 he started providing services in a different field but with a different Commercial Name-2. Also premises/ address is different. Clients are also different for both business Name-1 & Name-2 in FY 2016-17 The turnover of Business Name-2 was less than 5 lacs. Is he liable to pay Service tax for Business Name-2 ? He has not charged Service. Tax. from his cli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents If he has to pay Service Tax than his income will be reduced by 15% ST + Penalty + Interest There is no confusion that he will file personal Income Tax return by adding all incomes of Business Name-1 & 2 and from all other sources. Kindly quickly give advise because only 2 days are remaining to file personal income tax Reply By Raghunath Gadre: The Reply: If total income under single PAN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number is exceeding the taxable limits U have no option but to pay tax As far as GST is concern he may not opt for registration till he cross the limit of ₹ 20 lac turnover in financial year Reply By Rajiv agr: The Reply: Shri Garde thanks. The question is Pre-GST and for service tax specific to scenario, whether my proprietor friend is liable to pay service tax for Business Name-2 tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not registered with Service Tax Reply By KASTURI SETHI: The Reply: We are talking about pre-GST era. Turnover of all will be clubbed. Still you remain below ten lakhs. No ST liability. If no liability, no interest and no penalty is payable. If your turnover of all units crosses 10 lakhs during the preceding year i.e. 2016-17, then in 2017-18 you will not be eligible for threshold exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of 10 lakhs. In the year 2017-18, you will start paying ST from the day one i.e. Re one. From 1.7.17, scenario is entirely different. Reply By Rajiv agr: The Reply: Thanks Kasturi Ji Point of clubbing turnover is understood if there is no service tax registration However Doubt remains on treatment when Business Name-1 is registered with Service Tax and Business Name-2 is not registered wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th service tax
As per rules, once registered with S.T., irrespective of turnover in future years, Business Name-1 has to collect ST from customers & Pay to Govt / S.T.
... ... but due to clubbing of turnover will unregistered Business Name-2 will also have liability to pay Service Tax?
Reply By KASTURI SETHI:
The Reply:
Answer to query is yes. X X X X Extracts X X X X X X X X Extracts X X X X
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