Receipt basis payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 January 2014 Can a Partnership Firm whose Previous year turnover was less than Rs 50 lacs can pay Service Tax on receipt basis or not for the quarter Jan- March14

@VaibhavJ

@VaibhavJ (Expert)
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21 January 2014 Hi

In case of individual / partnership firms (including LLPs) whose aggregate value
from one or more premises is Rs.50/- lakhs or less in previous financial year , the
service provider may pay tax on receipt basis up to Rs.50/- lakhs taxable value.
Beyond Rs.50/- lakhs, service tax will have to be paid on the mercantile basis on
the basis of issue of invoice. Please refer notification 3/2012 dated March
17,2012.

Thx