WE ARE STARTING A NEW BUSINESS IN CONSULTING - THE BILLING WILL NOT EXCEED RS.8.00 LAKHS DURING THE CURRENT FY-YEAR.WHETHER SERVICE TAX HAS TO BE COLLECTED ON THIS?
Suppose if the turnover exceeds 10 lacs say during Feb-2012 , then should we start we collecting the service tax from the date it crossed 10 lacs i.e next billing onwards.In that case what about the previous bills where we have not collected service tax.Are we liable to pay.
09 May 2011
The exmeption upto 10 L of taxable services is exempt. Once you have crossed 10 l [ or even 9.5L] in this year you may start charging ST to avopid any payment out of pocket. Please read the point of tax rules.
CAclubindia
