limit for applicability for professionals ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 November 2009 hello members,
i have entered into a contract for rendering my professional services to an organisation @50,000 p.m. for a period of ONLY five monts viz. Nov-09 to March 10.

prior to this i was employed with a company & was getting salary (period April-09 till Oct-09) on which TDS was made.

Now for my contarct of service for which i shall be billing 2.5 lacs,is Service Tax applicable ?
pls guide,i am a bit confused as the organisation says that for All contracts they consider service tax by default.

i think service tax is not applicable to at least for this year

thanks in advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 November 2009 If the amount of services rendered is less than Rs. 10 lakhs per annum service tax provisions does not attract being first year.

CA Deepak S

CA Deepak S (Expert)
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16 November 2009 Service tax is appllicable if value of service provided by you in the previous year exceeds ten lakh rupees in the previous year. Since you have not provided any service in the previous year you are not liable to service tax. If the receipts from service for the current year exceeds ten lakh rupees you can start paying service tax.

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Sunil

Sunil (Expert)
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16 November 2009 Agreed with experts. You must register with the Service tax Department once your receipts (including advances against service to be provided) exceeds Rs.9.00 lakhs in the current financial year. You start charging your client or pay from your pocket once all these receipts exceed 10 lakhs. For purpose of service tax, receipts will also include reimbursements for expenses that you may bill to your client that have been incurred by you during the course of providing your services.