26 October 2011
I started a service distributorship as a properitorship firm with Reliance & Reliance asked for mandatory service tax registration & inclusion of service tax in the bills raised by us to Reliance & Reliance has been paying the said tax & we have been depositing the said tax in the govt treasury. Now we realize that the total transaction of our firm is less than 5 lakh, as such we do not fall in the category of service tax payer. My query is that can we tell Reliance that we are not falling under service tax category & start billing them without S Tax. Is it legal to exclude S.Tax in our bills of next year / remaining part of the year stating that neither our last year transaction nor the current year transaction is above 10 lakhs & we had paid S.Tax last year since we received the same from the government.
26 October 2011
First of all its legal. Kindly state the fact in writing to Superintendent of Central Excise having a jurisdiction over the place where from such services are provided. Possible file the service tax return within due date which implies that you have played part of role from your side as genuine assessee.
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