CA PRAMOD SARAOGI (Chartered Accountant) (1113 Points)
14 October 2009What shuold be amount of service tax payable to the Governement :
Finanacial Year Amount Billed Amount Received
Gross S.Tax Net
2005-06 3.50 - 3.50 Nil
2006-07 3.50 - 3.50 Nil
2007-08 7.50 - 7.50 Nil
2008-09 10.00 - 10.00 Nil
0.50 0.06 0.56 Nil
2009-10 5.00 0.05 5.05 30.11
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 15 October 2009
The tax liability for years 2005-06 to 2007-08 is NIL. The liability for 2008-09 is shall be 0.06 but the same will not arise in the year 2008-09. The liability will arise in the year of receipt of amount.
You are not eligible for small service provider exemption for 09-10. Your liability for 09-10 will be Rs. 0.06 [08-09] and Rs. 0.05 [09-10].
The service tax for 09-10 shall be claculated @ 10%. Hence the liability for 09-10 shall be 0.5 and not 0.05
Satish
(CA Final Student)
(479 Points)
Replied 18 October 2009
The liability will arise only in year 09-10 as all the money is received in year 09-10. The liability will be (30-10) * 10.3% i.e. 2.06
The exemption to small service provider is available if the gross RECEIPTS during previous financial year exceeds the prescribed limit. i.e. for financial 08-09 - 10 lakh, for 07-08 - 8 lakh, for 06-07 & earlier years 4 lakh.
In the given case, full amount is received in 09-10. Hence, Rs 10 lakh exemption is available in that year 09-10. Every rupee thereafter is liable to service tax.
Gautam Joshi
(Partner)
(361 Points)
Replied 18 October 2009
Hi Pramod,
Question asked by you is not that of registration but I like to put my view here is you should take registration in 08-09 itself as registration is applicable from 9 lakh. Regarding payment both the above friends are true.
Warm Regards.
CAclubindia
