Service Tax Registration

[Sanjeev Sharma]

As per Notification No. 33/2012 - Service Tax

 “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.”

A person carrying out activity of Patent Agent( Getting registration of patent and design)and gets majority income from foreign clients. In last year his receipt from Indian clients was about 5 lacs (total receipt , including fee received from foreign clients was about 30 lacs) and in the current year also fee from indian clients would be below 10 lacs.    

Will he require to take registration in light of new guidelines and notifications and to charge service tax on fee charged to indian clients. 

[JAMES PG]

Income received from foreign agents towards service rendered will be treated as export of services subject to the conditions prescribed under Rule 6 A(1) of Service tax rule   and hence may not be falling under the aggregate value of Rs 10 lacs

AI Summary

Export of services exclusion can prevent domestic service tax registration for practitioners with predominantly foreign fee income. Whether a patent agent must register depends on the aggregate value of taxable services charged in initial invoices during the financial year, which excludes amounts for services exempt under notifications and receipts qualifying as export of services. If fees from foreign clients meet export conditions and are excluded, only domestic receipts count toward the registration threshold; registration is not required if those domestic taxable receipts remain below the threshold.