liability to pay service tax

This query is : Resolved

Dimple (Querist)
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06 January 2010 A person has been registered as serive provider in previous year. Bills raised by him in this year is of Rs. 3,00,000/- i.e. it does not exceed 10,00,000/-. So is he liable to pay service tax and file the return?

Regards,
Dimple

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 January 2010 If he has not collected service tax,no need to pay tax. However 1/2 yearly return has to be filed in form no ST-3 for every half year that falls due from the date of registration.

CA Deepak S

CA Deepak S (Expert)
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07 January 2010 For determmining whether a person is liable to pay service tax, the total amount of bills raised by him in the previous year is to be considered. If he has raised bills for Rs 10 lakh during the previous year, then he has to pay service tax in the current year. If not he can avail the exemption for small service providers. In this case he need to start pay service tax when the total receipts (including current year and previous year bill amounts) during the year crosses rs 10 lakh.

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