Question about audit & service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2012 Hi,

I am a small service provider(proprietor) and my serivces turnover was less than 10 lakhs and hence I didn't applied for service tax number and neither my accounts were audited (As the limit was 10 lakhs.).

But today I found that my turnover has crossed 15 lakhs. (It is aroound 15.9 lakhs.). So will my account will require auditing from this year and should I apply for service tax number now? ( I was told that the limit for auditing was Rs.15 lakhs for service providers.)

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 March 2012 The audit limit is Rs. 60 lakhs for persons carrying on business.

The linit is Rs. 15 lakhs for professionals.

What is the nature of the service that you provide?

CA Prashant Gupta

CA Prashant Gupta (Expert)
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28 March 2012 The limit of Rs. 15 lacs is applied to professionals such as doctors, CA's, architect etc.
You are providing service of any of this nature than you are professional other wise you are a business man and limit of Rs. 60 lacs is apply to you.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2012 I am software professional providing services like web applications development. My services attracts service tax if the turnover crosses 10 lakhs.

And this financial year, my services crossed 15 lakhs. So will I require auditing of accounts from this year or from next year..? And should I apply for service tax number now?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 March 2012 You are required to get your accounts audited from next year.

Yes, you should apply for service tax registration. You will also have to pay service tax on the amount exceeding Rs. 10 lakhs.