Service Tax Payment

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Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2011 Whether there is any exemption limit for ST payment and registration.

Please suggest.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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25 January 2011 When a service provider is liable to pay tax?
If you are providing a taxable service and your last year turnover is less than 10 lakh, you need not pay service tax in current financial year. Whenever you cross the limit 10 lakh your service is become taxable.
Service tax registration
You need registration immediately after the turnover crosses 9 lakhs. Or if you starting a new business and sure about annual turnover will cross 10 lakh need to register with Superintend of central excise. You should register within 30 days of commencement of business.
For registration assesse should fill and submit a form called ST1.Now this can be done through ACES website. If you are providing multiple services,mention all those in ST-1 Take a printout and approach superintend under whose jurisdiction your company falls.

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2011 Dear Sir,

What about ST liability in the first year in which the TO crosses 10lakh.

Regards,

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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25 January 2011 You need registration immediately after the turnover crosses 9 lakhs. Or if you starting a new business and sure about annual turnover will cross 10 lakh need to register with Superintend of central excise. You should register within 30 days of commencement of business.

ST Liability will be amount of service tax on Rs. 10 Lac above.

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2011 Dear Sir,

Thanks for your reply.

Sir, my question is, whether one has to pay tax in the year itself in which the limit of 10 lakh crosses or from the next year. (note - please clarify last year TO in your reply)

Regards,

C.A.Javid Patel

C.A.Javid Patel (Expert)
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25 January 2011 Yes you have to pay tax in the year in wich it crossed 10 lacs but you have to pay only on additional turn over. for eg if turn over in first year is 1100000 then you have to pay onlu on 100000.