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Service tax liability

Indiatrainer (Head) (61 Points)

09 January 2013

Hi,

I have a couple of questions concerning ST.

My annual training business (to students and individual engineers and professionals in corporate batches)is less than 10 Lakhs. But still I have charged service tax from my clients, and filed service tax return and paid this tax to government. My question is that is it compulsory that I keep on charging service tax from my clients now (since I charged this earlier) and paying the corresponding tax, even if projected business is less than 10L.

Shall appreciate your suggestions

Thanks

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5 Replies

CA D.C. Bansal (Accounts Head) (283 Points)
Replied 09 January 2013

You have to charge the service tax only if your turnover is more than 10 Lacs.

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CA D.C. Bansal (Accounts Head) (283 Points)
Replied 09 January 2013

You have option to either charge or not to charge the service tax if your turnover is more than 10 Lacs. But if you have opt to charge the service tax for any year, you will not be allowed to avail the exemption for that year i.e. you will have to charge the service tax for that full year.

Indiatrainer (Head) (61 Points)
Replied 09 January 2013

Thanks a lot Mr Bansal.

So you mean that If I charged ST in April 2012, then I must do this till March 2013 . Right?

I will apprecaite if you can provide me some refernce in support of your claim.

Sonu Kumar (Account Manager) (665 Points)
Replied 09 January 2013

The service provider has the option not to avail exemption and such option can not be withdrawn during the relevant year, however, it can be withdrawn from the beginning of next year.

Indiatrainer (Head) (61 Points)
Replied 09 January 2013

@ Sonu Kumar, Suppose I did not charge ST from April 2012 to December 2012 from my 3 clients A, B & C, and then I charge ST from a client D (as my client D asked for it) in the month of January 2013. The problem is clients A, B and C are not ready to give any Service Charge for ST after so many months and I cannot track them. What do I do now?