Service tax applicability

This query is : Resolved

Aisha (Querist)
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01 January 2010 What is the procedure If the exemption limit of 10 lac is crossed in the first year and service tax amount is not collected from clients being under the impression that turnover would be less the 10 lacs.

CA Deepak S

CA Deepak S (Expert)
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01 January 2010 Apply for service tax registration immediately. you have to pay service tax on the value of service exceeding Rs.10 lakh

Aisha

Aisha (Querist)
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01 January 2010 my company is already registered for service tax .. are you saying if i have recd 12 lacs i need to pay service tax on 2 lac in the first and next year onwards need to pay service tax on the whole amount i.e. 12 lac(if 12 next yr also collected)

i havent collected any service tax from the client this year

kindly advise

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SAIBAL

SAIBAL (Expert)
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01 January 2010 Pay this year's tax on calculating cum duty price of Rs.2.00 lac's.along with interest asap. then from next year onwards you have to pay full tax at present 10.30% from Rs.1/=. You will lose your exemption if your last year's turnover crosses rs.10.00 lac slab.You can continue to pay service tax on cum duty if not collected from the customer!!

SAIBAL

SAIBAL (Expert)
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01 January 2010 Please also do not forget to pay the Interest @13% for delayed payment of S.Tax.