Master TDS & TCS Provisions with Critical Issues. Register Now!

Service tax

lata bhandari (admin) (34 Points)

27 March 2014

Hi, I have a query related to the service tax payment. My question is that; if a company (Pvt. Ltd.) that is registered with Service Tax is earnings about 8 to 9 laks per annum and is in a no profit condition then is the company still liable to pay the service taxes (applied on the invoices raised by the company to their clients). 8 to 9 lakhs is the amount of total that has been received from the clients and the amount is consumed in monthly/yearly expenses like salaries, rent and other operational things. Is there any provision to waive off the service tax amount for the particular year or any other option? Apart from the option of surrendering the service tax registration. Please share your suggestions or advice on this. Thanks

Reply
Follow
Share

5 Replies

Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 27 March 2014

SSI exemption are available to all units upto the turnover of 10 lakhs. No need to take registration and no need to pay service tax. If you have registered with service tax then filing of return is madantory.

Upgrade to CAclubindia Pro. Subscribe Now!

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 27 March 2014

Dear lata, there is recent notification ( dnt remember the no exactly) according to which you can surrender your service tax no in next year if your gross turnover is below 10 lakh.( small service provider). I suggest you to not to surrender your service tax no as in future if you take any service under reverse charge then you have to get your registration again. So it will b a smarter decision to maintain your s.t. No in my opinion. Regards

lata bhandari (admin) (34 Points)
Replied 27 March 2014

Dear Mr. Arun, Thank you for the kind response. Yes the company is registered with service tax. You said that filing return is mandatory that is fine but what about paying the service tax amount.

Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 27 March 2014

No need to pay service tax if turnover is below 10 lakhs for service provider. But under the reverse charge system, you need to pay service tax even if your turnover is below 10 lakhs vide notification no. 30/2012-ST.