input service tax but no service tax payable

This query is : Resolved

sonal (Querist)
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01 July 2010 the company has a registration with the service tax dept for the number. however it does not have a turnover of rs. 10 lakhs reqd for the limit. but it has to pay service tax on certain bills which is not taken as input as there is no service tax bein charged to parties.

is the company requd to file the return despite turnover less than rs. 10 lakhs. can the company charge service tax on bills? what should be the treatement of input service tax in either of the case?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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01 July 2010 If registered, filing of return compulsory.

If the SSI exemption is availed, the company can not charge Service Tax.

Input services received during the exemption period are not eligible for Cenvat.

If exemption is not availed, service tax can be charged and Cenvat availed.