My self i m consultant Engineer, i have taken service tax reg. no. but presently my busines approx. 8-9 lac per anum & i invoice raise to customer as consultancy without service tax so pls. clear my following querries
1. I have S.Tax reg. No. but my business below servcie tax limit then wil i do service tax return deposit ??
2. If Yes then is this possible i follow in Accounting Marcantile basis but i want service tax deposited when i recd amount from customer (cash base)
3. because we raise to bill customer but sometimes customer not to pay full payment he deduct 25 to 30% amount from bill against excess rate or whatever
In terms of Section 69 of the Finance Act, 1994 (Chapter V) read with rule 4 of the Service Tax Rules, 1994 -
Every person who has provided a taxable service of value exceeding Rs. 9 lakhs, in The preceding financial year, is required to register with the Central Excise or Service Tax office having jurisdiction over the premises or office of such service Provider.
In case a recipient is liable to pay service tax (Please see question No. 1.2) he also has to obtain registration.
The ‘Input Service Distributors’ are also required to register them as per Notfn. No. 26/2005-ST dated 07.06.2005 as amended.
If a person who is liable to pay Service Tax fails to pay service tax, he shall pay in addition to such tax and interest in accordance with the provisions of Section 75 of the Act, a penalty 13 which shall not be less than Rs.200/- for every day during which such failure continues or @2% of such tax per month, whichever is higher. However, the penalty amount payable shall not exceed the amount of Service Tax payable. (Refer to Section 76 of the Finance Act, 1994).
Filing of return within the prescribed time limit is compulsory, even if it may be a nil return, failing which penal action is attracted
1. Filing return is compulsory, since you are registered. The exemption upto Rs. 10 Lakh is not automatic, but optional. Please mention the exemption notification number in the return evidencing your opting for the exemption.
2. You may follow mercantile basis for Accounting. But Service tax is payable on cash basis. This is applicable to all service tax assessees.
03 July 2010
Agreed Mr. Naik You have to file return . You may follow mercantile accounting for account records. For payment , it is your choice. As per service tax law, cash basic for payment of service tax is allowable.
As per your case, in which customer deducts some amount, it is better to deposit service tax on cash basic. By this you have to deposit only that amount which you received from customer.
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