Service tax applicability

This query is : Resolved

Sachin Gupta (Querist)
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17 December 2015 Hi Sir/Madam,

I have started a Proprietorship firm(Healthcare Service Provider) in Dec 2015 in rented Office and take a service tax registration. Now my Query is that is it manadatory to Charge S.Tax separately in Invoice which i'll raise?

If it is manadatory to Charge S.Tax in Invoice then can i avail the input credit of Rent, Communication etc bills. and if it is not manadatory to charge S.Tax in Invoice then any need to file S.Tax return while our gross receipts is below the limits of Rs. 10 lakhs. Pls Help.

Mohit Singla

Mohit Singla (Expert)
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17 December 2015 As you have mentioned that you has taken the service tax registration so in that case its mandatory to file Service tax return even in case of zero service value.
The liability to charge service tax arise only when your gross value of services exceed Rs. 10 lakh and but eligibility to take credit of Input services arise when your service tax liability arise means gross service value is more than 10 lakh and you are charging service tax on the invoices.
I hope you get all the answers

Sachin Gupta

Sachin Gupta (Querist)
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17 December 2015 It means we have to file the half yearly S.Tax return as NIL.
Also let me know that can i use the service tax paid on input services used now with service tax payable in future.

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Mohit Singla

Mohit Singla (Expert)
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18 December 2015 Yes you have to file nil return.
and
You are currently not eligible to take credit of service tax paid on input service as you are not paying any service tax on output services.
As soon as you start paying service tax on output services you can utilize the input service credit.
I advice you to make a separate record of these input services. It would helps you in future for hassle free calculation of amount with documentary evidences in hand.