WORK DONE ON CONTRACT BASIS

[Asked by Guest]

IN CASE A PERSON (INDIVIDUAL) DOES SOME WORK ON CONTRACT BASIS FOR THE YEAR 2010-11, THE VALUE OF WHICH EXCEEDS RS. 10 LACS, WHETHER HE HAS TO TAKE THE REGISTRATION UNDER SERVICE TAX LAWS. PLEASE REPLY ME

[YAGAY and SUN]

Yes, as and when he reachs or cross the threshold  limit of Rs. 9.00 Lacs, he has to get himself registered with Service Tax Department and when he reachs or cross the threshold limit of Rs. 10.00 Lacs, then he would have to charge service tax and would have to start depositing it to the Department.

[Mahir S]

Yes, i also agree with the above view. However, the following points may be verified before applying for registration under Service Tax :.

(i) Whether the WORK DONE ON CONTRACT BASIS actually falls under the category of service tax and if so, under which category of services does it fall..

(ii) Whether there are any exemptions or abatement available for such services..

AI Summary

Service tax registration requirement for contract work triggers registration and charging obligations once statutory thresholds are crossed.
An individual performing contract work must obtain registration when turnover reaches or exceeds Rs. 9.00 Lacs, and must begin charging and depositing service tax once turnover reaches or exceeds Rs. 10.00 Lacs. Prior to registration and collection the taxpayer should confirm that the contract work is a taxable service, identify the relevant service category, and determine any applicable exemptions or abatements that may affect liability.