I had recently started my firm (sole proprietorship) and had applied for a service tax registration number. This was essential to get empanelled with customers and to open a bank account under the firm's name.
Since I've just started, the revenue is not sizable yet. I understand that I can apply for an exemption from service tax as long as the revenue is under 10 lacs, which will be the case.
I need to raise invoices for my clients. Considering Service Tax is exempt under 10 lacs but I have registered for a service tax no., do I need to necessarily charge the customers with S.Tax @14.5% or it is not required till the revenue is less than 10 lacs? I am asking this since it'll be difficult to charge this amount initially.
06 January 2016
You don't need to charge service tax however it is mandatory that you file service tax return and mentioning the total service amount and then claim exemption
CAclubindia
