MANDAP KEEPER
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 March 2011
I have registered before two years...
I have file 5 half yearly returns....with NIL
now this Oct to March'11.... first time my gross t.o goes to 10.25... do I need to pay s.t on Rs. 25 thousand or not ? & how much ?
I have file 5 half yearly returns....with NIL
now this Oct to March'11.... first time my gross t.o goes to 10.25... do I need to pay s.t on Rs. 25 thousand or not ? & how much ?
31 March 2011
what ever you have collected from your client , say if you have collected service tax on entire 10.25 lacs than you need to pay all that .
If you have only collected service tax on 25 thousand than you need to pay service tax only on that amount
Thanks
If you have only collected service tax on 25 thousand than you need to pay service tax only on that amount
Thanks
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 March 2011
but I didn't collect any s.t yet
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 March 2011
i have to know if i didn't collect then what will be happened ? Do I have paid s.t ?
03 August 2024
As a Mandap Keeper (a service provider managing a place for events and functions), you need to understand how service tax applies to your situation, particularly given your gross turnover and the fact that you haven't collected service tax.
### **Service Tax Applicability and Liability:**
1. **Service Tax Threshold Limits:**
- **Exemption Threshold:** For service providers, there used to be a threshold limit for exemption from service tax, which meant if your gross annual turnover was below a certain amount, you would not need to pay service tax. However, this threshold has been revised over time.
- **For the period in question (October 2010 to March 2011), the exemption threshold limit was Rs. 10 lakhs.** If your gross turnover was Rs. 10.25 lakhs for the period, it exceeded this threshold.
2. **Service Tax on Mandap Keeper Services:**
- **Taxable Service:** Mandap Keeper services are taxable under the category of "Mandap Keeper" services. Service tax is applicable on the services provided by the Mandap Keeper.
- **Rate of Tax:** The standard service tax rate during the period you mentioned was 10% of the value of taxable services, plus an additional 2% education cess and 1% secondary and higher education cess, making the effective rate 13% at that time.
3. **Liability for Service Tax:**
- **Service Tax Payment:** Even if you have not collected service tax from your customers, you are still liable to pay service tax on the taxable value of the services provided.
- **No Collection:** The fact that you did not collect service tax from your customers does not exempt you from the liability. The service tax liability remains, and you are required to pay it even if it was not collected.
### **Calculation for the Period (October 2010 to March 2011):**
1. **Gross Turnover Exceeds Threshold:**
- Since your turnover exceeded the threshold limit of Rs. 10 lakhs, you are liable to pay service tax on the entire amount exceeding this limit.
2. **Taxable Amount:**
- Assuming Rs. 10.25 lakhs is the total gross turnover for the period and assuming no other exemptions or deductions, the taxable amount would be Rs. 10.25 lakhs.
3. **Service Tax Calculation:**
- **Taxable Value:** Rs. 10.25 lakhs (considering the entire turnover is taxable).
- **Service Tax Rate:** 13% (including cess).
- **Service Tax Payable:** Rs. 10,25,000 x 13% = Rs. 1,33,250.
### **Actions to Take:**
1. **Pay Service Tax:**
- **Make Payment:** You need to pay the service tax amount of Rs. 1,33,250 to the government. This should be done promptly to avoid any penalties or interest.
2. **File Returns:**
- **File the Returns:** File the service tax returns for the period in question, even if the returns were previously filed as NIL. Update your returns to reflect the actual taxable turnover and the service tax payable.
3. **Penalty and Interest:**
- **Penalty for Non-Payment:** Since service tax was not collected or paid on time, you may be liable to pay interest and possibly a penalty for late payment. Ensure you check the exact regulations for penalties applicable during that period.
4. **Consult a Professional:**
- **Seek Advice:** It is advisable to consult with a tax professional or a consultant to ensure compliance with all regulatory requirements and to receive guidance on handling late payments and penalties.
### **Summary:**
- **Service Tax Liability:** You are liable to pay service tax on the entire amount if your turnover exceeded the exemption threshold and no service tax was collected.
- **Amount Payable:** Based on a gross turnover of Rs. 10.25 lakhs, the service tax payable is Rs. 1,33,250.
- **Action Required:** Pay the service tax, file updated returns, and consult with a professional for advice on penalties and compliance.
This will help you ensure compliance and avoid any further issues with service tax authorities.
### **Service Tax Applicability and Liability:**
1. **Service Tax Threshold Limits:**
- **Exemption Threshold:** For service providers, there used to be a threshold limit for exemption from service tax, which meant if your gross annual turnover was below a certain amount, you would not need to pay service tax. However, this threshold has been revised over time.
- **For the period in question (October 2010 to March 2011), the exemption threshold limit was Rs. 10 lakhs.** If your gross turnover was Rs. 10.25 lakhs for the period, it exceeded this threshold.
2. **Service Tax on Mandap Keeper Services:**
- **Taxable Service:** Mandap Keeper services are taxable under the category of "Mandap Keeper" services. Service tax is applicable on the services provided by the Mandap Keeper.
- **Rate of Tax:** The standard service tax rate during the period you mentioned was 10% of the value of taxable services, plus an additional 2% education cess and 1% secondary and higher education cess, making the effective rate 13% at that time.
3. **Liability for Service Tax:**
- **Service Tax Payment:** Even if you have not collected service tax from your customers, you are still liable to pay service tax on the taxable value of the services provided.
- **No Collection:** The fact that you did not collect service tax from your customers does not exempt you from the liability. The service tax liability remains, and you are required to pay it even if it was not collected.
### **Calculation for the Period (October 2010 to March 2011):**
1. **Gross Turnover Exceeds Threshold:**
- Since your turnover exceeded the threshold limit of Rs. 10 lakhs, you are liable to pay service tax on the entire amount exceeding this limit.
2. **Taxable Amount:**
- Assuming Rs. 10.25 lakhs is the total gross turnover for the period and assuming no other exemptions or deductions, the taxable amount would be Rs. 10.25 lakhs.
3. **Service Tax Calculation:**
- **Taxable Value:** Rs. 10.25 lakhs (considering the entire turnover is taxable).
- **Service Tax Rate:** 13% (including cess).
- **Service Tax Payable:** Rs. 10,25,000 x 13% = Rs. 1,33,250.
### **Actions to Take:**
1. **Pay Service Tax:**
- **Make Payment:** You need to pay the service tax amount of Rs. 1,33,250 to the government. This should be done promptly to avoid any penalties or interest.
2. **File Returns:**
- **File the Returns:** File the service tax returns for the period in question, even if the returns were previously filed as NIL. Update your returns to reflect the actual taxable turnover and the service tax payable.
3. **Penalty and Interest:**
- **Penalty for Non-Payment:** Since service tax was not collected or paid on time, you may be liable to pay interest and possibly a penalty for late payment. Ensure you check the exact regulations for penalties applicable during that period.
4. **Consult a Professional:**
- **Seek Advice:** It is advisable to consult with a tax professional or a consultant to ensure compliance with all regulatory requirements and to receive guidance on handling late payments and penalties.
### **Summary:**
- **Service Tax Liability:** You are liable to pay service tax on the entire amount if your turnover exceeded the exemption threshold and no service tax was collected.
- **Amount Payable:** Based on a gross turnover of Rs. 10.25 lakhs, the service tax payable is Rs. 1,33,250.
- **Action Required:** Pay the service tax, file updated returns, and consult with a professional for advice on penalties and compliance.
This will help you ensure compliance and avoid any further issues with service tax authorities.
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