Service Tax Payment

This query is : Resolved

RINA GUPTA (Querist)
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09 September 2009 While providing services, a sole proprietor charges the service tax in bill and receives the same. But he knows that at the end of FY his total turnover will be less then 10 lacs.
So what should he do ? Should he make the payment of service tax quarterly and claim refund afterwards.
Or can he keep the money as a more gain/profit from his services.
Also, can you please let me know the treatment of the service tax money refunded, should they be paid back to companies from whom it was charged.

Please advice, your reply is very important.

Thanks,
Rina

Shyam Lal Naik

Shyam Lal Naik (Expert)
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09 September 2009 Availment of the small scale exemption is optional. The option can be excised once during the FY. As the service provider has not opted to avail the exemption, he is required to charge, collect and pay service tax.

Question of refund does not arise in the given situation.