Registration under service tax

[MANOHAR KALBURGI]

Dear Sir,

My doubt is like this

Where service tax payable is opted on receipt basis as per 3rd proviso of the (ii)(1) 6 and for checking the registration criteria is also on receipt basis checked or accrual basis?

Eg: during the year actual receipt is ₹ 7,50,000/- and accrual basis say 12,00,000/- since i am paying service tax on receipt basis hence my T/o is below the prescribed limit for registration under Service Tax. Or should I liable for registration on accrual basis T/o which is > 10 lacs as stated above?

It is urgent please provide your valuable opinion.

Thank You in advance

[KASTURI SETHI]

Sh.Manohar Kulburgi Ji,

In Service Tax, the assessee was required to file application for registration when his turnover reaches one lakh below threshold exemption limit. So the benefit of actual receipt basis is for payment of ST only and not for the purpose of registration. Emphasis is on the word,'turnover'. So you should have applied for registration on the date when you crossed 9 lakhs and not within 30 days.

See relevant portion of Notification No.33/12-ST dated 20.6.12 effective from 1.7.12.

(viii) the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.

(B) “aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66B of the said Finance Act under any other notification.”

I hope your doubt is clear now.

[MANOHAR KALBURGI]

Thank you for your opinion.

AI Summary

Turnover threshold for service tax registration is assessed on accrual basis; receipt basis governs only tax payment timing. Registration for service tax is determined by turnover/aggregate value measured by value charged in the first consecutive invoices issued in the financial year (an accrual/invoice basis), and the option to pay tax on a receipt basis pertains only to timing of tax payment, not to the basis for registration.