07 February 2015
For small scale service provider registration is required upto 9 Lac and service tax is payable once turn over exceeds thresholds limit of Rs: 10 Lac. When one commences its business & provide its services, in this case he/she issues the bills to increase the turnover. Wanna know would service tax is charged with the bill issued to service recipient, or until turnover exceeds the thresholds limit amounting Rs: 10 lac. One should not charge service tax with the bills amount.
08 February 2015
Once you crossed 9 lac and got the RC, the option is with you whether to to collect service tax in the bills and pay or after reaching 10 lacs you can start collecting the applicable service tax. Once you start paying service tax you are also eligible for cenvat benefit and set off the same against your output tax.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
09 February 2015
Rengaraj R.K Sir, I want to know when One starts business & provide its services then shouldn't service tax be charged with the invoice amount until turnover cross the limit of Rs 10 Lac.
Point No 2: As per law service tax shouldn't be charged until turnover cross 10 lac. If someone starts charging service tax from the first invoice & it has charged service tax more than 50 invoices to reach the limit of thresholds limit of Rs 10. In this case what one do with service tax amount charged on 50 invoice. should he give back the amount of service tax charged on 50 invoices to service recipients or deposit to Govt.
CAclubindia
