Murugesan Palanisamy (Accounts Executive) (64 Points)
15 September 2011
we want to know the eligibility amount to pay service tax .
we are planing to start the service based company, and turnover is not yet known. In this case is it necessary to apply for ST Number? Please advice
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 15 September 2011
Dear Murugesan,
As per my Knowledge, a provider of Taxable Service is compulsorily required to get Service Tax Registration within 30 days of crossing the threshold limit of Rs.9 lakhs of gross receipts in a year from such taxable services for the first time. Though tax is to be paid only after crossing threshold limit of Rs.10 lakhs.
hemant
(job)
(468 Points)
Replied 15 September 2011
| Originally posted by : CA Prabhat Gupta | ||
 |
Dear Murugesan, As per my Knowledge, a provider of Taxable Service is compulsorily required to get Service Tax Registration within 30 days of crossing the threshold limit of 9 lakhs of gross receipts in a year from such taxable services for the first time. Though tax is to be paid only after crossing threshold limit of 10 lakhs. |
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Agree
Murugesan Palanisamy
(Accounts Executive)
(64 Points)
Replied 15 September 2011
Thank you Mr.Gupta and Mr.Hemant for your prompt reply,
and one more question,
if we cross 10 lakhs in december, then we need to pay tax April to December month tax.
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 16 September 2011
Dear Murugesan,
No, you would not be required to pay Service Tax on Receipts from April to December. To be more clear, you are required to charge service tax on your bills only on crossing the threshold limit of Rs.10 lakhs. Just keep track of your total receipts and when you expect to cross the above limit of Rs.10 lakhs, start charging and paying service tax on your receipts from taxable services.
CS Bijoy
(Expert)
(6394 Points)
Replied 16 September 2011
Now for registration is 9 lakh and 10 lakh for liability for Service tax.
CAclubindia
