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Service tax applicability

Gudipati Roja (Audit manager) (131 Points)

17 December 2014

I got Service Tax registeration and have been paying Service Tax but for the year 2013-14 Turnover is below 10,00,000/-. So do i require to pay service tax for 2013-14? and can i cancel Service Tax Registration?

Please help me out.

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9 Replies

Shivangi Upadhyay (CA Final Student) (98 Points)
Replied 17 December 2014

Once you start charging service tax even though your turnover does not excees Rs.10,00,000/- you have to charge and pay it for the remaining part of the financial year.

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kumar hattanna (Officer - Excise) (525 Points)
Replied 17 December 2014

Once you get registration you need file service tax return.

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koundinya (stundent) (56 Points)
Replied 17 December 2014

It is irrelevent wether ur turnover exceeds rc 1000000/-or not if ur a rigistered person so u have to pay it

1 Like

vinodkumargupta (proprietor) (115 Points)
Replied 18 December 2014

Once you get yourself registered with service tax and started paying service tax, thereafter it is irrelvant whether thereafter your turnover exceed threshold limit or not. your liability to pay tax is there,

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Sumeet Lunkar (CA) (48 Points)
Replied 18 December 2014

According to Notification 33/2012 if the aggregate value of taxable services provided in the preceeding financial year does not exceed Rs. 10 Lakh then the service provider can claim the Small Service provider exemption. However the following conditions apply: -> Claiming of exemption is optional -> However option once exercised it cannot be withdrawn -> It cannot claim cenvat credit on services recieved and capital goods purchased -> Balance credit lying on the date of availing exemption shall lapse -> After exercising the option, if in the current taxable services provided exceeds Rs. 10 Lakh, then service tax shall be charged on any amount over and above Rs. 10 Lakh. Also it can claim credit from thereon

In your case since in FY 2013-14 you have taxable services less than Rs. 10 Lakh. In the current year 2014-15 you can claim the benefit provided until today no service tax has been levied by you.

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Mukesh Kumar Singh (CA-FINAL) (4094 Points)
Replied 18 December 2014

Agreed with the answers provided by mates

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Arif Ali (Apt Co Advisory) (1230 Points)
Replied 18 December 2014

no need to cancel the registration. Since in this year you are treated as Small Service Provider. Then you have option to take the benfit of SSP. then you have not need to pay the service tax upto 10,00,000 turnover, after above you have to charge the service tax.

If in this year again your trunover upto 10,00,000 then in next year you will be again treated as SSP then you can avail the otpion of SSP and not need to pay the service tax.

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Manish K.Gandhi (Superintendent) (966 Points)
Replied 24 December 2014

The question is asked in Month DEC-2014 for payment of S.Tax for F.Y.2013-14 but not disclosed Turnover of F.Y.2012-13 and whether S.Tax charged during 2013-14 and in F.Y.2014-15. If turnover in F.Y.2012-13 exceed Rs. 10 lakh, S.Tax to be charged and paid in F.Y.2013-14 and if less than 10 lakh in 2012-13, but in 2013-14 ,once charged S.Tax to be charged and paid throughout the Financial year 2013-14. If turnover is less than 10lakh in 2013-14, once S.Tax charged in 2014-15, S.Tax to be charged and paid through out the F.Y.2014-15. If S.TAx is not charged in F.Y.2014-15 since beginning, considering T.O. less than 10 lakh, NIL ST-3 Return may be filed claiming exemption 33/2012-ST.

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