17 August 2009
We have started a coaching centre for which we are registered under service tax. Till date we dont have any income from the coaching centre but we have a input credit which we have paid for designing of website. Now my query is do we have to charge service tax or it is exempt till the time expemtion limit is crosses? Can I take credit of input paid by showing it in return and carry forward it? Is it allowed not to charge service tax though we are registered under service tax?
18 August 2009
You have 2 options: 1) Claim the initial exemption of Rs. 10 lakhs under ST. Not 6/2005. In such case do not avail the credit. Once you corss the 10 L then pay the ST and avail the credit thereafter. If you do not reach the 10 L then in next year again claim the 10 lakhs limit. Once you exceed and pay the ST avail the credit. File returns six monthly disclosing the amount billed / recived. 2) Avail the credits and carry forward by filing retruns. Start payin gthe ST from re.1 Normally the first option is preferable.
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