(Querist) 14 August 2008
This query is : Resolved
Dear Sir, I have started a new firm of housekeeping befor 15 days.i have got one contract for that and i am taking monthly chages which is below 1lac.So what are the taxes applicable to me and what I have to do for registration under this taxation laws?Please kindly explain me in detail? And please tell me the yearly limit for the applicability of service tax.
(Expert) 15 August 2008
Service Tax is exempted upto 10 lakhs per financial year
(Expert) 16 August 2008
Hanif you are providing services and therefore VAT is not application. Service tax is applicable but as Rajesh Kumar has said if the gross billing goes more thatn 10lakhs. If your customer is desirous of you registering under service tax and passing on the tax to customer, you can register inmmediately and raise all bills including service tax. There is Income tax on the profit and profession tax on your firm. These are the main taxes.