Below rs. 10 lacs

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2011 Suppose a service provider started his agency in Jan'2011 and up to 31st March he provided services to 8 people.
All 8 invoices are of Rs. 1 lac each and on every invoice he charges 10.3% i.e. Rs. 10,300/- as service tax.
Now, Whether he has to deposit or not amounts collected by him as service tax to Department, as he provides services for less than Rs. 10 lac i.e. Rs. 8 lac ?
If yes than what is significance of Rs. 10 lac. limit?

Ravikant

Ravikant (Expert)
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30 July 2011 once a person charges service tax on bill he has to deposit the same with the govt,
to claim the 10 lac limit, he should have not charged service tax on the bills

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