Raajasekar (Finance Manager) (37 Points)
14 July 2009Please update me on when the service tax is to be charged if the turnover crosses the prescribed limit?
For example : a service provider expects that the turnover may cross the prescribed limit but not sure. Whether he should start charging service tax from the start of financial year or from the point when the turnover crosses the prescribed limit in that financial year. And when he should get registered with Service Tax Department?
chintan mehta
(Chartered Accountant)
(445 Points)
Replied 14 July 2009
he is liable to pay service tax if services exceeds 10 lakhs .. but he has to register himself once he crosses 9 lakhs
CA Shilpi Jain
(Indirect taxation)
(155 Points)
Replied 15 July 2009
If during the previous financial year the limit of Rs. 10L was not crossed (i.e. the receipts for the services rendered) then in the current year the asseesse need not pay service tax on the first Rs.10L received from its customers.
Though It would be beneficial if the asseessee pays ST on the first 10L also as he wil be able to claim cenvat credit on the input duties and service tax paid which would otherwise not be available for the inputs used during the receipt of the first Rs.10L during the year.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 15 July 2009
Shilpi is correct except for pr yr Rs 10 Lakhs is value of taxable services provided not receipts.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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