When to Collect ST on bills ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 March 2010 Dear Experts,

I want to know my last year T.O is nearest to 9Lacs and I am registered under ST but this year my t.o is also less than 10 Lacs.. so my que is when I have to collect st and which rate... ?

If I have to filled return even you have not collect or liable for tax so how to filed nil st return and in a year How many return I must have to filled to st dept.?

Pls help me and give me your special advice

thanks in advance

Pragnesh

Pragnesh (Expert)
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18 March 2010 The exempted limit is decided by department is Rs.10 Lacs, in that case if your turnover is 9 Lacs in Last year then you can start to collect service tax when your turnover is cross Rs.1 lac in current year. In every year you need to be filed twice time return to the department for the period April to Sept. (Last date for sub. is 25th Oct.) and Oct. to March ( Last date for submission is 25th April). Return is mandatory once you obtain service tax no. whether it is nil or value.

Regards
Pragnesh

Shyam Lal Naik

Shyam Lal Naik (Expert)
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18 March 2010 The exempted limit is 10 lakh for each year.

From the facts, you are liable to charge and collect ST only on crossing the limit of 10L. Turnover means sum of consecutive receipts. There is difference between Accounting TO and Turnover for Service Tax.

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Pragnesh

Pragnesh (Expert)
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18 March 2010 Dear Expert
The exemption of ten lakhs is available every year if you have not crossed the ten lakh limit in the previous year. If you cross the ten lakhs limit this year, then you cannot avail the exemption for the next year. Thus every years exemption availability is based on previous years turnover. The turnover in the previous year decides whether you can avail exemption this year.

let us assume that your turnover is six lakhs for the year 2006-07,
seven lakhs for 2007-08 eight lakhs for 2008-09 and 12 lakhs for 2009-10. You can avail exemption for the whole of seven lakhs for 2007-08. You can avail exemption for the whole of eight lakhs for 2008-09. You can avail exemption upto ten lakhs for 2009-10. After ten lakhs, you have to pay service tax. For the year 2010-11, you cannot avail exemption. Assuming your turnover for 2010-11 is only nine lakhs. Then for the year 2011-12 you can avail the exemption once again.

Pragnesh

Pragnesh (Expert)
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18 March 2010 When the Service Tax qualified turnover crosses Rs 8.00 Lakhs in any financial year, such Person or Firm shall invariably Register with Central Excise, Service Tax Authorities. When it crosses Rs 10.00 Lakhs in any financial year, it should collect Service Tax from its customers and remit to Government. In the next financial year, from the first Rupee of the turnover, it should collect Service tax and remit to Government. The Exemption limit of Rs 10.00 Lakhs do not apply. As long as it is continuously hold the Service Tax Registration, it should collect and remit duly following the Service Tax Rules and Regulations.