Private co & service tax liability

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Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2012 when does liability arise for the service tax payment when co is a priavate lid co?

mahak katyal

mahak katyal (Expert)
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29 April 2012 Firstly,the Asessee should be liable to get registered and that arises in an year where the gross receipts exceeds 9lacs.
From the next F.Y the assessee should collect s.tax component from the very first day.The liability actually arises on the total of receipts where the gross receipts exceeds 10 lacs in the F.Y.So to be on the safer side,the company should collect it from every receipt,so that if later the limit of 10 lacs exceed,it wont have to pay fro its own pocket!

CA PARTH SHAH

CA PARTH SHAH (Expert)
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29 April 2012 According to me, when receipts exceeds 10 lakhs, service tax is to be paid only on amount exceeding rs 10 lakhs and not from the first rupee

however in previous year if receipts exceeded Rs 10 lkhas then in current year you have to pay service tax from first recipt.

Since it is company, it has to make monthly payment of service tax on 5th/6th (in case of online payment) of the next month.

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CA PARTH SHAH

CA PARTH SHAH (Expert)
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