15 July 2010
Sir i am a bus body making contractor in a company and i issue my bill with the name of job charges and my annual turn over is 2700000. i have no service tax registration and my company allso not provided me service tax.in this case how can i save my service tax bxs i did not collect service tax thru my company and my company give me 8 % service charges as per profit only and how can i pay service tax 10.3 % .
15 July 2010
Once your Income in a previous year exceeds from 9 lacs you are required to register yourself under Service Tax and once the turnover exceeds from 10 lacs you are are required to deduct Service tax and deposit to the Govt.
In your case, turnover is 27 lacs, more than the exemption threshold limit, you are required to charge Service Tax in the bill and pay tothe Govt.
You will be liable to pay service tax along with interest and penalty
15 July 2010
AGREED WITH EXPERTS. FOR FUTURE, PLEASE CHARGE SERVICE TAX ON BILL AND COLLECT IT FROM COMPANY. FOR MINIMIZE SERVICE TAX LIABILITY, PLEASE ISSUE SEPARTE BILL FOR SERVICE CHARGE AND SEPRATE BILL FOR MATERIAL. AS YOU ARE SAYING YOU GOT 8% FOR YOUR SERVICE. I.E IF YOU ISSUE SEPARTE BILL FOR IT. THEN YOUR SERVICE LIABLITY WILL BE 10.30% OF 8% WHICH YOU GET EASILY FROM YOUR CUSTOMER.
CAclubindia
