SHARIQUE (Self Employment) (48 Points)
30 December 2011Dear frnds,
Can anybody clarify me if a company, whose turnover is less than 10 lacs, started charging service tax from first bill. The company is now planning to avail SSI exemption. Is that available to them. How should they proceed.
Thanks in Advance.
SUNIL
(ACCOUTANT)
(167 Points)
Replied 30 December 2011
No, the Tax is applicable over 10.00 turnover.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 30 December 2011
WHEN YOUR TURNOVER CROSS THE LIMIT OF RS 9 LAKHS YOU HAVE TO REGISTER FOR SERVICE TAX & TAX PAY AFTER CROSS THE LIMIT OF RS 10 LAKHS
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 30 December 2011
A reference is required to point number 2 (1) of the Notification No.6/2005-ST dated 01.03.2005 on Exemption to Small Service Providers, as amended from time to time. The same is produced below for reference:
"2. The exemption contained in this notification shall apply subject to the following conditions, namely:-
(i) the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;"
Where you have started charging Service Tax from the first bill, it amounts to exercise of option for non availment of above exemption notification. THe same could not be withdrawn for the remaining part of the year. Hence you should continue to charge & deposit service tax on your invoices.
But where the turnover of current year does not exceed Rs.10 lacs, you can claim above exemption next year, provided other conditions given in the notification are satisfied.
arnab chakraborty
(Executive Taxation)
(34 Points)
Replied 30 December 2011
Parashar
(Company Secretary 2004)
(1013 Points)
Replied 30 December 2011
Thanx Prabhat for information
praveen
(Chartered Accountant)
(6971 Points)
Replied 30 December 2011
| Originally posted by : CA Prabhat Gupta | ||
 |
A reference is required to point number 2 (1) of the Notification No.6/2005-ST dated 01.03.2005 on Exemption to Small Service Providers, as amended from time to time. The same is produced below for reference: "2. The exemption contained in this notification shall apply subject to the following conditions, namely:- (i) the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;" Where you have started charging Service Tax from the first bill, it amounts to exercise of option for non availment of above exemption notification. THe same could not be withdrawn for the remaining part of the year. Hence you should continue to charge & deposit service tax on your invoices. But where the turnover of current year does not exceed 10 lacs, you can claim above exemption next year, provided other conditions given in the notification are satisfied. |
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CA Kiran Sutrave
(CA)
(428 Points)
Replied 30 December 2011
Agree with CA Prabhat Gupta and the basic exemption limit was raised from Rs. 8 lakhs to Rs. 10 lakhs
LALIT KUMAR GANERIWAL
(accountant)
(241 Points)
Replied 31 December 2011
YES I AGREE WITH CA PRABHAT GUPTA
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 02 January 2012
Please refer to Notification No.8/2008-ST dated 01.03.2008, wherein the limit of Rs.8 lakhs as was replaced with Rs.10 lakhs. The same is attached below for reference.
Salma M Khanapur
(accounts assistant)
(21 Points)
Replied 05 January 2012
thanks prabhat sir for your service tax information.
CAclubindia
