Service tax - 10lakhsturnover exemption query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2014 Hello Experts,

I'm starting a new partnership firm this month and I have registered for Service Tax.
I'm not sure if my turnover will cross 10L this year. But on a safer side, I'm collecting ST from my customers. In case if my turnover ends below 10L, should I pay this collected ST amount? or is it exempted.

Suppose if I collect ST from my clients and at the year end if my turnover doesn't cross 10L, what should I do with the collected st amount? Will that be counted as income?

Kindly clarify.

AVTAR SINGH

AVTAR SINGH (Expert)
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04 February 2014 You are entitled to work without collecting and depositing service tax upto threshold limit of 10 lakh. If turnover exceeds 10 lakh then start collecting and depositing tax.