08 June 2013
He is liable to get registered under service tax, when his gross turnover exceeds Rs. 9 Lakhs. Moreover, he will be liable to pay service tax on the amount only on the services which exceed Rs. 10 Lakhs. I.e. Till Rs. 10 Lakhs, no service tax liability shall arise. When the turnover exceeds Rs. 10 lakhs(say in the 11th month), then he shall be liable to pay service tax on balance Rs. 1 lakh only(11 Lakhs less 10 Lakhs) & not on entire Rs. 11 Lakhs You can also refer notification no. 33/2012 for the same(which prescribed various conidtions.e.g non-availment of CENVAT, etc.)
11 June 2013
sir, Service tax on accrual basis so according the above case service provider get service from one month 12 lakh during the whole year as a contact. So he is liable for register into service tax from first month or after 10lakhs service bill or he liable to pay tax from first month.
11 June 2013
Dear Ayushi.. It has been mentioned in the query "new service provider"...which means that previous' year turnover of taxable services was less than 10 Lakhs(since it was 0)....Hence, no need to pay service tax till 10 Lakhs during the current year, by virtue of N/N 6/2005 as amended by N/N 33/2012.... As an when his value of taxable services exceed Rs.10 Lakhs(i.e. from 11th Month onwards)....he shall be liable to pay service tax on the amount in excess o Rs. 10 Lakhs
CAclubindia
