VAT SERVICE TAX FOR EVENT MANAGEMENT COMPANY IN BANGALORE
I understand that no VAT / TIN no is required for business up to Rs 5 Klakhs /Annum. Kindly confirm.
Is service tax required to be levied for catering to events? If so what is tha percentage?
For event Management, certain bought out items are to be provided as a part of the package. These items have already attracted VAT. While billing, should VAT be levied on these items also. If so what is the percentage.
I have an Event Management set up in Chhattisgarh duly registered. Can I open a branch in Bangalore? If so, what are the requirements?
A supplement querry to the above.
Is commercial space required for registering ( VAT /TIN) an event management company? Or will domestic address serve the purpose.
Also is it essential to register the company if VAT/TIN is not appplied for. If so, with which agency?
First point, minimum limit is not 5 lakh, it was increased to 10 Lakhs. However there are different creterias to look out for registration. If you make a interstate purchase, you need to register under VAT.
Also note that Event management services are liable to tax, PAN India if your receipts crossed 9 lakhs in a year you need to take service tax registration.
You need to have a commercial place for VAT registration.
You can open a branch in Bangalore, but have to obtain fresh VAT registration as VAT is levied by state acts. Service Tax registration is not requried seperatly.
Dear Mr Pulkit Sharma
Thanks for your prompt reply.
MIne is a startup venture. So if my turn over is less than 9 lakhs, it is not essential to obtain service tax registration.
I have the following query on this please.
If not registered, then should the client be charged Service Tax 14%+ cess 0.5%+ Cess 0.5% in the bill.
a. If yes, then how does the collected amount get remitted to the authorities since the firm is not registered.
b. If no, then during the year in case the turn over exceeds 10 lakhs, there will be a problem since service tax was not collected in the bills and, as per the law, the same has to be remitted to the authorities.
Thanks again for the prompt response.
You dont have to charge service tax, since you are exempted upto 10 Lakhs. Registration is to be taken after 9 lakh sales and chargeability starts from 10 lakhs.
If during the year receipts cross 9 lakhs, take service tax registration and you need to charge service tax thereafter. Service tax needs to charged from the day receipts cross 10 lakhs, below its optional. But once you start charging, you need to charge on all bills.
There will be no problem on invoices made before service tax registration. You dont have to pay service tax for those invoices.
For accounting I will suggest https://tiktant.com
Thank you again for the clarification.
But the banker says that for opening a bank account in the firm's name some registration is a must.
Today is Sunday. I will again go and meet the Banker for getting a current account.
And thenks for the account software link. I definitely will be needing an accounting software and will vist the link you have provided.
Thanks once again please.