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St when gross income less than 10 lakhs

Naveen Kumar Jain (Chartered Accountant) (640 Points)

11 August 2015

A service provider is registered under service tax and obtained ST number in 2014-15 in auxiliary business services. In 2015-16 his gross income from any taxable services is not likely to exceed Rs 10 lakhs. Can he discontinue charging of service tax in his invoices, even without surrendering his registration number?

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2 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 11 August 2015

1) Service Tax is not paid on income, but on Gross receipts / Billing of taxable services

2) all taxable services would be compunded for the purpose.

if gross receipt of business is below 10 lacs in FY 14-15 then meet your superintendent and submit the facts, on verification he can guide you better

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 11 August 2015

Service providers whose taxable services in the PY is <=10 lacs are SSPs in the CY. So if previous year turnover has not exceeded the limit, then there is no need to charge ST in the current year till u reach the exemption limit. However, u will have to file nil ST3 return during the current year. There is no need to surrender the registration.