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Service tax payment

Neville (Student) (53 Points)

05 April 2014

Can you let me know if an Assesse has taken a Service tax number and his billings are less than 10 lakhs .. whether he is liable to pay any service tax?

Secondly, should he file his returns with any liability or is it nil?

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Deepak Gupta (CA Student) (15922 Points)
Replied 05 April 2014

Originally posted by : Neville
	Can you let me know if an Assesse has taken a Service tax number and his billings are less than 10 lakhs .. whether he is liable to pay any service tax? Secondly, should he file his returns with any liability or is it nil?

> Where the assessee has taken service tax registration and the aggregate value of taxable services does not exceed Rs. 10 lakh, then he can take the benefit of Notification No. 33/2012, dated 20.06.2012 (Exemption to small service providers). However, benefit of this notification is not available to the service recipient under reverse/partial reverse charge.
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> Assessee shall be exempted from the levy of service tax, provided the conditions laid down therein are satisfied. He will be required to pay tax on receipts exceeding Rs. 10 lakhs - Click here for Notification
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(I have presumed that, this is the first year of business. If not, then to avail the benefit in the current year, the preceding FY taxable services should not be more than 10 lakhs.)
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> “Filing of return within the prescribed time limit is compulsory, even if it may be a nil return, failing which penal action is attracted.” – Para 4.9 of Service Tax FAQs issued by the Directorate General of Service Tax - Click Here