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Service tax liability

MaNThaN Shah (Student) (315 Points)

20 June 2013

I m providing service of "renting of immovable property". As per agreement Monthly Rent from 01/04/2013 - 90000/-. That means Yearly 10,80,000/-

Do i need to apply fot ST number now or wait for reaching 9,00,000 limit?

Do i need to collect Service tax from First bill of april ? as it is well known in advance that my total receipt will exceeds 1000000/-

Please clarify the legal position in this regards.

THANKS IN ADVANCE

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2 Replies

Nirav Worah (CHARTERED ACCOUNTANT) (396 Points)
Replied 21 June 2013

Exemption of 10 lakhs will be available if turnover in the P.Y does not exceed Rs 10 lakhs. Exemption upto 10 lakhs can be availed if it is the first year of operation. Hence, you can avail exemption upto 10 lakhs and charge service tax on amount exceeding 10 lakhs during the year.

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CA Brindavan Giri (Professional) (76 Points)
Replied 22 June 2013

The obligation for registration under Service Tax arises on the very moment Taxable Value of service provided exceeds Rs 9,00,000. Un eed to apply for registration within 30 days from 1st january. And since you are Small Service Provider, you can claim exemption from service tax for taxable value upto Rs 10, so your service tax liability will arise only in last month. So charge service in the last month on Rs 80,000 @ 12.36%.