Hi, my firm is registered as a trading unit and hence only has VAT & CST TIN numbers. Since its a startup I am depending on few free lancers for various services (for example, portion of marketing activities and accountings). The problem here is how to accommodate the concerned expenses which most of the times is the service fee to the service rendering party.
The party rendering services to my firm could be free lancers (that means even they would not be having any service tax registration) or it could be a service rendering firm (with all the necessary registartions)
expert guidance is required.
Thanks
Trading Firm Seeks Guidance on Service Tax for Freelancers; Advice Includes Record-Keeping and Consulting a Chartered Accountant A trading firm, registered with VAT and CST TIN numbers, seeks advice on handling expenses for services from freelancers or registered service firms, particularly regarding service tax implications. One respondent clarifies that services without consideration are not taxable under the Finance Act, and service tax is not applicable below a Rs. Ten Lakhs threshold. Another suggests maintaining comprehensive financial records, such as balance sheets and profit and loss accounts, for proper accounting and tax filing. Both recommend consulting a Chartered Accountant for detailed guidance tailored to the firm's business activities. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
