Turnover for service tax registration
This query is : Resolved
05 December 2012
computer stall and services both vat and service tax applicaable? turnover for service tax registration sale and service received
05 December 2012
Hey
You are eligible to pay ST once your Value of taxble service provided exceeds Rs.10 lacs & you have to register once you exceed Rs. 9 lacs of taxable turnover.
Thanks//Vaibhav
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You are eligible to pay ST once your Value of taxble service provided exceeds Rs.10 lacs & you have to register once you exceed Rs. 9 lacs of taxable turnover.
Thanks//Vaibhav
Revert for more clarity.
Use thank button to convey your appreciation.
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05 December 2012
Dear Kanchan,
If you are able to bifurcate between the value of goods and the value of service then you need to consider value of service only.
However, if you are not able to distinguish between the value of goods and value of services then as per Service tax (Determination of value) Rules, 2012. Your work is covered under work contract and service portion for your service is 70% of gross amount charged (excluding sales tax).
The service tax liability is to be discharged by both service provider and service receiver. Both will pay 50-50% of service tax liability.
For eg -
if the gross amount charged is Rs. 120 (including Rs 20 as vat)
Gross amount is (120-20)X70% = Rs 70
Service tax liability = 70 X 12.36% = 8.652
Service tax liability to be discharged by service provider 4.326
Servic etax liability to be discharged by service receiver 4.326
Regds
CA JAYANT BOTHRA
M: 9873-626-020
If you are able to bifurcate between the value of goods and the value of service then you need to consider value of service only.
However, if you are not able to distinguish between the value of goods and value of services then as per Service tax (Determination of value) Rules, 2012. Your work is covered under work contract and service portion for your service is 70% of gross amount charged (excluding sales tax).
The service tax liability is to be discharged by both service provider and service receiver. Both will pay 50-50% of service tax liability.
For eg -
if the gross amount charged is Rs. 120 (including Rs 20 as vat)
Gross amount is (120-20)X70% = Rs 70
Service tax liability = 70 X 12.36% = 8.652
Service tax liability to be discharged by service provider 4.326
Servic etax liability to be discharged by service receiver 4.326
Regds
CA JAYANT BOTHRA
M: 9873-626-020
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