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

Service Tax Registration Must Be Based on Turnover, Not Receipts, Exceeding 9 Lakh as per Notification 33/12-ST. A query was raised about whether service tax registration should be based on receipt or accrual basis when paying service tax on a receipt basis. The individual had actual receipts of 7,50,000 and accruals of 12,00,000, questioning if registration is required as the accrual exceeds 10 lakh. A response clarified that registration should be based on turnover, not receipts, and should have been applied for once 9 lakh was exceeded, as per Notification No. 33/12-ST. The clarification emphasized that the receipt basis is only for payment, not registration criteria.