2 questions on Sales tax on service industries registration -need help

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  1. Cpanda

    Cpanda New Member

    Have 2 questions if someone could help:

    Do we need to pay Sales tax for service industries? Like online services where selling is not included however services like consultations or software based services are given?

    Also when a company is registered in India its generally registered with one state with an address...is it ok to start the office in another state in india however having the registration on a different state?

    Thanking the CA's in advance for their help.
  2. rudrabose

    rudrabose Active Member

    For Service Industries, Service Tax is applicable instead of Sales Tax.

    You can get more than 1 office registered with Service Tax Deptt for the same registration. The Service Tax laws are not state specific but country specific and remain the same across India.
  3. Cpanda

    Cpanda New Member

    Thanks Rudra for your quick response.

    So I understand that the sales tax are not applicable.. The second thing is:
    If I have registered the company in one state and now want to start the office in another state...It is needed that I first do the registration and then take the place on lease or is it ok to start and then register it when the company starts earning
    Also what if its an online business where I dont need to take a office in lease and just its the online consultancy ?
    Is it ok? Thanks again.
  4. rudrabose

    rudrabose Active Member

    1. You can start the operations and side by side register the place.
    2. Even if its online business, you would be working from somewhere. Even if you are working from your home, you can register your home with the Service Tax Deptt.
    3. Service Tax Registration is not required in case your gross sales during the year is less than 10 Lakhs.
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