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

[Asked by 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: aggregated proprietor turnover can make an unregistered business liable to pay service tax.
A proprietor's separate businesses under one PAN have their turnovers aggregated for pre GST service tax threshold purposes; if aggregated receipts exceed the exemption threshold the proprietor must charge, collect and remit service tax and may face interest and penalty. Additionally, existing service tax registration for one business creates an ongoing obligation to collect and pay tax, and aggregation/registration can render an otherwise unregistered trade name liable under service tax rules.