Do I need to register and pay service tax for a startup?

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  1. DPier

    DPier New Member

    I am in the process of registering an LLP for design services. Could someone please give me answers to the following queries:
    1. When do I need to register for the Service Tax?
    2. If I do not get any projects for a few months, do I need to register and pay any service tax?
    Situation a- If for a few months there is less work and I make less than 9 lacs and suddenly I get projects which amounts to over 9 lacs in the coming months. Would I need to register for service tax after I cross 9Lacs or from the time I register the LLP? would I need to ask for separate 14% service tax from all my clients from the very beginning as part of the invoice even If I haven't applied for the Service Tax and not crossed 9 lacs?
    Would really appreciate if someone could give me answers to the same.
  2. Parul_Gupta

    Parul_Gupta Active Member

    1. You are required to register for Service Tax only once the value of services provided by you during the Financial Year exceeds Rs. 9 Lakhs
    2. You should collect Service Tax from clients only once you have applied for Service Tax Registration
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