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?
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.
CAclubindia
