Is there any Service tax liability for Unauthorised Workshops

[Asked by Guest]

Please confirm is there any liability of Service tax on Unauthorised Workshops

[YAGAY and SUN]

Dear Aman,

Under Negative List regime, Service Tax would also be applicable on Unauthorized Workshops provided threshold limit has been crossed.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

Since when it has been imposed and what's the threshold limit please give me complete notification in this regard

Authorised or unauthorised workshop would not impact service tax liability. If the total consideration during any financial year is more than 10 lacs, service tax is payable. However, ST registration is mandatory once the value touches 9 lacs.

AI Summary

Service tax liability applies to workshops when annual turnover exceeds the statutory threshold; registration obligation then arises.
Service tax applies to workshop services under the Negative List regime regardless of authorised status, conditioned on receipt of consideration and exceeding the statutory annual turnover threshold; registration is required as turnover approaches and crosses the prescribed threshold.