Service-tax-liability for proprietor-of-1-regd-business started 2nd-unregd. business

[Guest]

As a proprietor my friend has a business registered in Service Tax. The Registration uses a Commercial Name-1 instead of personal name. His turnover was greatly reduced to less than 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 clients

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

AI Summary

Service Tax Liability Concern: Clubbing Turnovers of Two Businesses Under One PAN May Affect Tax Obligations A proprietor with a registered business under Service Tax (Business Name-1) started a second unregistered business (Business Name-2) with a different commercial name, premises, and clients. In FY 2016-17, Business Name-1's turnover was under 1 lakh, and Business Name-2's was under 5 lakhs. The proprietor is concerned about the Service Tax liability for Business Name-2. Responses indicate that if the total turnover under a single PAN exceeds the taxable limit, Service Tax must be paid. Clubbing turnovers of both businesses may affect liability, and once registered, Service Tax must be collected regardless of turnover.