Filing st-3 return when turnover is below 10 lakhs
This query is : Resolved
24 June 2015
Dear Sir/Madam,
I have 2 questions on Service tax
a) Is it mandatory to file ST-3 return even when total turnover is below the threshold exemption (of Rs.10 lakhs)
Next is regarding the applicability of Notification no 33/2012.
b) If my yearly turnover is as follows:
Year 1 - 6 Lakhs
Year 2 - 12 Lakhs
Year 3 - 8 Lakhs
Year 4 - 7 Lakhs
In year 2 i will start paying ST and also in year 3 i have to pay ST since my previous year turnover is > 10L. But in year 4 am i required to pay ST?? since my PY turnover is < 8lakhs can i avail exemption under 33/12 or is that exemption available only once for an assessee???
Thanks in Advance
I have 2 questions on Service tax
a) Is it mandatory to file ST-3 return even when total turnover is below the threshold exemption (of Rs.10 lakhs)
Next is regarding the applicability of Notification no 33/2012.
b) If my yearly turnover is as follows:
Year 1 - 6 Lakhs
Year 2 - 12 Lakhs
Year 3 - 8 Lakhs
Year 4 - 7 Lakhs
In year 2 i will start paying ST and also in year 3 i have to pay ST since my previous year turnover is > 10L. But in year 4 am i required to pay ST?? since my PY turnover is < 8lakhs can i avail exemption under 33/12 or is that exemption available only once for an assessee???
Thanks in Advance
24 June 2015
Exemption of Rs 10 lacs can be availed only once. Thereafter you require to pay Service Tax.
If you have service tax registration then you have to file service tax return, even if it is NIL return.
If you have service tax registration then you have to file service tax return, even if it is NIL return.
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24 June 2015
Dear SIr
Thank you for your prompt response.
can you please quote section/circular/notification reference?
Once again thanks. i am quoting notification no 33/2012
2. The exemption contained in this notification shall apply subject to the following
conditions, namely:-
(i) the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;
............
(viii) the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.
Thank you for your prompt response.
can you please quote section/circular/notification reference?
Once again thanks. i am quoting notification no 33/2012
2. The exemption contained in this notification shall apply subject to the following
conditions, namely:-
(i) the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;
............
(viii) the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.
24 June 2015
You can claim exemption in year 4. The only condition is that you should not have charged service tax separately in the invoice. If you charge service tax separately then it must be paid to the Govt.
25 June 2015
http://www.simpletaxindia.net/2012/09/service-tax-exemption-limit-who-can.html
Check out above link for details.
Check out above link for details.
25 June 2015
@Sanjay Gupta, thank you for sharing the link. I would like to point out two things here. Firstly, the example in the link should have continued for one more year to cover the query in this topic. Secondly, the exemption rule clearly states that it applies to the previous financial year and it is nowhere mentioned that it can be claimed only once. If a service provider crosses the limit of Rs.10 lakh then in the subsequent year he will have to pay service tax from the very first rupee as he is not sure whether in that year he will cross Rs.10 lakhs or not but if he does not cross Rs.10 lakhs in that year then in the next year he can claim exemption on the basis of turnover not exceeding Rs.10 lakhs in the previous year. However, if service tax is charged separately in the invoice it must paid. This has been confirmed by the superintendent at Pune.
26 June 2015
Sunil Ji your view is correct. Service Tax will not be applicable in the 4th Year.
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