new registration for service tax proceedure & rules

[Guest]

I am working in accounts assistant.  My boss have some buildings.   He was given rental for commercials . The rental income is near 1000000/- till date. And he was getting every month chit canvasing commission from chit company the approcimate of  Rs.500000 and above.

 

But service tax Rs.1000000/- is exemption for registration. After 10 lacks what is the amount for taxable (my doubt From tax Rs.1/- or Rs.10,00,001.)

One service tax number two services providing . Two services limit is rs.1000000/- or each services limit exceeding 1000000/- .

If exceeding one services 1000000/- and another services rs.400000/-

is eligible for one service tax or both

renting for commerical purpose, which category services in service tax

and 

chit canvasing commission received from chit running company. The company deduct tds and issue the tds certificate. The company was not added service tax by commission

Which category for chit canvasing commssion in service tax. 

My boss eligible for chit canvasing commission in service tax

Kindly reply it.

Regards

K Suresh Babu

 

 

[A Wilson]

Dear Sureshbabu,

Commission received on Chit Canvassing is not a Declared Service. But After the implementation of Negative List Concept, this is an intermediary service/Agent Service, the same will be taxable. You may register under either one of the following;

• BUSINESS SUPPORT SERVICE
• OTHER TAXABLE SERVICES- OTHER THAN THE ONES MENTIONED ABOVE

Thanks & Regards,

 A.Wilson

[JAYARAMAN M]

Dear sir

service tax initial exemption is only once and for all services for one assessee and only in the first year.

if your total services per year do not exceed 9 lacs  no registration, no service tax every year.

u manage the assessee income less than 9 lacs per year per assessee and do not pay any servicetax at all.

 

AI Summary

Service tax threshold governs registration; intermediary commissions are taxable as agent services requiring appropriate registration. Commission from chit canvassing is treated as an intermediary/agent service and taxable; register under Business Support Service or Other Taxable Services. The initial exemption applies once for the assessee and is assessed on aggregate services in the year, so if total service receipts remain below the exemption threshold no registration or service tax arises.