Applicability

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2013 one of my client was having taxable service less than Rs. 9.00 lacs but was having receipt of more than Rs .10.00 lacs (TDS too deducted) in the PY 2011-12. In 2012-13 (FY) taxable sercvice exceed Rs. 10.00 lacs. No notice has been received from S Tax Deptt. Whether S Tax is applicable for 2011-12 or from 2012-13? Plz provide your valuable advise

PAWAN KUMAR

PAWAN KUMAR (Expert)
Follow

31 July 2013 During the year 2011-12, if the taxable income is less than 9 Lac you need not to obtain registration. but in year 12-13, there is a increment in the taxable income, hence registration is to be obtained from the department and accordingly service tax is to be paid.

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2013 Thank you Pawan Ji for your promt reply. one thing I forgot to mention that the client is Proprietorship in nature and during 2011-12, they filed their IT return on receipt basis. will it make any difference.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Suresh Jain

CA Suresh Jain (Expert)
Follow

31 July 2013 Your query gives to understand that the amount of TDS deducted is not considered by you as a part of receipt and consequently taxable service. In other word, if amount of TDS is included in the amount received for service provided the amount of service provided (taxable) shall exceed Rs 10 Lakh in FY 2011-12. In view of this your client, even if a proprietor, was not only liable for registration but also for payment of service tax

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

01 August 2013 Yes, CA jain saab is correct. The point of taxation rules have been changed. Better to apply for RC and start collecting service tax, not on receipt basis but on invoice basis.

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2013 Let me quantify my issues:
1. In 2011-12- Invoices raised- Rs. 8.70 lacs
2. In 2011-12- Gross receipt- Rs. 10.50 lacs-after deducting TDS (including fee of previous year)
3. 2011-12- In IT return, turnover shown as Rs. 12.00 lacs (approx)-on receipt basis
4. 2012-13- Invoices raised- Rs. 13.50 lacs
5. 2012-13- Gross Receipt- Rs. 10.90 lacs- after deducting TDS

Whether S Tax is applicable for 2011-12 or from 2012-13. Now he has got S Tax Reg No. No notice has been received from Deptt.
Please advise.