29 March 2012
Hi, we are into commercial training and computer services registered for Service Tax in 2006. Till last year end we have not collected service tax since the turn-over for services was less than 10 lakhs every year. This year we have collected tax for computer services by giving invoices and not collected for training provided. Now, my auditor asked me to pay the collected tax amount. Fine, it has to be. We will do that.
My confusions are:
1. The Service tax exemption limit of 10 lakhs is for every year or from the date of registration?
2. Suppose next year (2012 - 2013) if my turnover does not cross 10 lakhs and I collect the same taxes towards computer services and not for training, DO I NEED TO PAY THE S.T FOR TOTAL TURN OVER?
3. Suppose if I don't collect tax at all since my turn-over is less, is it an offense?
CAN SOME BODY HELP ME CLEARING MY DOUBT SINCE I AM FROM A NON COMMERCE BACKGROUND?
29 March 2012
LET ME GIVE AN EXAMPLE IF UR TURNOVER FOR 2011-12 IS 9 LAKHS THEN NO SERVICE ATX IF ITS 11 LAKHS AND YOUR TURNOVER FOR 2010-11 WAS LESS THEN 10 LAKHS THEN ST ON RS 100000 ONLY IF YOUR TURNOVER FOR 2011-12 IS 11 LAKS THEN FOR 2012-13 U WILL BE LIABLE TO SERVICE TAX WHATEVER IS YOUR TURNOVER FOR THAT YEAR CA MANOJ GUPTA
30 March 2012
Thanks for ur response Mr. Manoj. But, do you mean to say 'if once it exceeds 10 lakhs, then I need to collect ST for rest of the years or only the next year. And if the next year (2012 - 2013) does not cross 10 lakhs, do i need to collect for 2013 - 14 also? waiting for your expert advise !
30 March 2012
if once exceed 10L then u need to collect tax on turover above 10L only say ur turover is 11L in 2011-12 and ur Turnover in 2010-11 is less than 10L then u need to collect tax only on 1L Continuing the above even If ur turnover for 2012-13 does not exceed 10L still u need to collect tax on entire amt
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