Query on Service Tax Dues and Payment

Page no : 2

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 25 March 2011

read the notifications carefully , exemption is available every year. whether duty paid or not not paid in previous year does not matter with exemption.

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siva thunder (article student) (253 Points)
Replied 25 March 2011

thank u sharma jii

Pinky Agarwal (Chartered Accountant) (426 Points)
Replied 25 March 2011

Originally posted by : U S Sharma
	Notification New Delhi, the 1st March, 2008 No. 8/2008-Service Tax 11 Phalguna, 1929 (Saka) G.S.R. (E).–In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 6/2005- Service Tax, dated the 1st March, 2005 which was published in the Gazette of India, Extraordinary, vide number G.S.R. 140(E) of the same date, namely:- In the said notification, for the words “eight lakh rupees”, wherever they occur, the words “ten lakh rupees” shall be substituted. 2. This notification shall come into force on the 1st day of April, 2008. (Unmesh Wagh) Under Secretary to the Government of India [F. No. 334/1/2008-TRU] Note:– The principal notification No. 6/2005-Service Tax, dated the 1st March, 2005 was published in the Gazette of India, Extraordinary, vide number G.S.R. 140(E), dated the 1st March, 2005 and was last amended vide notification No. 4/2007-Service Tax, dated the 1st March, 2007 vide number G.S.R. 158(E), dated the 1st March, 2007.

The above is the amendment made in 2008, I think.. and in this notification amendment is made only in threshold limit. no other things were amended. So, restrictions/conditions remain same as they were before..

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 25 March 2011

Originally posted by : U S Sharma
	read the notifications carefully , exemption is available every year. whether duty paid or not not paid in previous year does not matter with exemption.

If that relates to reading of the next notification carefully, then I would request you to please highlight where it is written that the "preceding financial year limit" clause is withdrawn...because as far as my interpretation goes to that one..it has only reference to threshold limit and nothig more than that..

CA Saiyum khan (Practicing CA) (690 Points)
Replied 25 March 2011

I agree with Mr. Rithesh, the subsequent notification is only for enhancing the threshhold limit.

So it is clear that if the previous year turnover has exceeded Rs.10 lacs then service tax in the following year has to be paid from the first bill itself irrespective of the expected turnover of that year.