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Service tax query

vinayak Parkar (Accounts exe) (92 Points)

20 November 2010

If service tax is registered today then is it compulsary to pay for service tax for earlier years.

Regards

Vinayak

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6 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 20 November 2010

NO, ELIGIBLE when he is NOT REGISTERED HIMSELF AS PER RULES.

WHEN HE IS service provider and exceeds the gross amount of service tax more than threshold limit in any preceding year or in current year, he has received the gross amount of more than threshold limit of Rs. 9,00,000/-.

A person liable to pay service tax should file an application for registration within thirty days from the date on which the service tax on particular taxable service comes into effect or within thirty days from the commencement of his activity. (Refer Rule 4 (1) of Service Tax Rules, 1994)

Every assessee is required to submit a half yearly return in form S.T.3 or S.T.3A (in triplicate) along with copies of T.R.6 challans. GAR-7 For the purpose of filing returns half year is counted from April to September and October to March. In case the assessee has opted for provisional payment of service tax he is required to file the service tax return in form S.T.3A. (Rule 7(1) of Service Tax Rules, 1994)

FURTHER NOTED THAT:-

The half yearly return is required to be filed by the 25^th of the month following a particular half year. (Rule 7(2) of Service Tax Rules, 1994)

The assessee is required to deposit the amount of service tax due in the designated banks through TR-6 challan .

(Refer Rule 6 (2) of Service Tax Rules, 1994) ( Assessees may contact jurisdictional office for details of designated banks.)

FURHTER NOTED THAT:-

From 1st October, 2006 e-payment of service tax has been made mandatory for the assessees who have paid service tax of Rs.50 Lakhs and above during the last financial year or who have paid service tax of Rs.50 Lakhs and above during the current financial year (i.e. 2006-07, till 30th September, 2006) (Refer Rule 6 (2) of Service Tax Rules, 1994)

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Kumar (CA) (666 Points)
Replied 20 November 2010

1. So if registration was not required in earlier financial years (since threshold limit as applicable to the respective financial years were not exceeded) then service tax is not required to be paid now for earlier years. On the other hand, if there is a default then service tax needs to be paid along with interest for earlier years.

2. Further, service tax for the current year needs to be paid only if the gross receipts for taxable services during the Current year exceeds Rs. 10 lakhs

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 20 November 2010

So if registration was not required in earlier financial years (since threshold limit as applicable to the respective financial years were not exceeded) then service tax is not required to be paid now for earlier years. On the other hand, if there is a default then service tax needs to be paid along with interest for earlier years.

Anand (Chartered Accountant) (166 Points)
Replied 20 November 2010

If you were not liable in previous year, then no required to pay service tax.

BIJAY KUMAR MOHANTY (Firm) (26 Points)
Replied 22 November 2010

A, consultant provided service to B. B , being Govt organisation paid service tax together with bill to A.

A's total service value has never exceeded even Rs.5 lakhs in past years nor expected to exceed in comming 2 years.What is procedure to deposit ST so received without registration under ST.