10 August 2015
MY CLIENT LAST YEAR FY 2014-15 GROSS RECEIPT RS.1200000 AND FY 2015-16 IS RS.700000 AND FY 2013-14 RS 200000 MY QUESTION IS HE TAKE THE SERVICE TAX REGISTRATION REQUIRED OR NOT.THE MY CLIENT AGREEMENT WITH BUILDER TO SUPPLY LABOUR AND ALSO DO THE WORK HIMSELF.THE TDS DEDUCTED RS.12000. INCOME TAX RETURN FILLED 4S FY 2014-15
10 August 2015
FY 2013-14 - Assuming this is the first year/ receipts in FY 2012-13 did not exceed Rs 10 lakhs. Since the turnover does not exceed Rs 9 lakhs, he is NOT required to obtain service tax registration.
FY 2014-15 - Since the turnover in the previous year did not exceed Rs. 10 lakhs, exemption for small service provider is available and no tax liability till turnover of Rs. 10 lakhs. In this year the turnover is Rs. 12 lakhs. Accordingly service provide has to obtain registration. He is also liable to pay service tax on the turnover exceeding Rs 10 lakhs, i.e., Rs. 2 lakhs
FY 2015-16 - Since the turnover in the previous year exceeded Rs. 10 lakhs, exemption for small service provider is NOT available. The service provider is liable to pay service tax from day one. He has to pay service tax on the whole Rs. 7 lakhs
FY 2016-17 - Since the turnover in the previous year did not exceed Rs. 10 lakhs, exemption for small service provider is available and no tax liability till turnover of Rs. 10 lakhs.
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