One of my friend was just registered with service tax department voluntary (even though he has not crossed the limit of exemption) My query is still he can enjoy the basic exemption limit of 10 lakh while charging Service Tax to the client (ie need not collect ST from the client till he crosses the limit of 10 lakh )
Is there any restriction that he should not collect during this period , if he is willing to collect and pay to the department
Should he need to file NIL return during this period
23 September 2011
Yes you can enjoy benefit of exemption limit but you have to file NIL service tax return And amount which you have collected from client should be disclose in ST return under "Value on which Service Tax is exempt/not payable"
CAclubindia
