Pawan Mittal (CA Final) (711 Points)
26 August 2012Suppose a company earns Rs. 12 lacs in Financial Year 2011-12, will it have to pay service tax on Rs. 12 lakh or Rs. 12-10= 2 lakh and in F.Y. 2012-13, company earns Rs. 15 lacs. What is the service tax treatment for both the years?
Please give section no. or notification no.
CA. Praveen Kumar P
(CA & CS)
(113 Points)
Replied 26 August 2012
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 26 August 2012
for 1st year 12-10= 2 lacs taxable
for 2nd year 15 -0 = 15 lacs taxable
Nitin Katariya
(Article)
(94 Points)
Replied 26 August 2012
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 26 August 2012
Yes. First year 2 lacs, and for the next year the exemption is not available. You have to collect and pay the tax for 15 lacs turnover.
Pawan Mittal
(CA Final)
(711 Points)
Replied 26 August 2012
and if the company earns income of Rs. 5 lakhs in the third year what will happen than?
ANAND S
(student)
(162 Points)
Replied 27 August 2012
The said 10 lac exemption we can claim at once when turnover exceed 10lac they are not small service provider and from next year onwards they need to charge even their turnover is 1rs. so third year if 5lac then taxable amt is 5 lac
MAHADEV WAGHAMODE
(SR. ACCOUNTS OFFICER)
(21 Points)
Replied 27 August 2012
Sir one question there is reverse charges mechanism system
for example supply of man power 25% and 75% ie 3.09% and 9.27% where 3.09% is shown as service tax receivable but what about 9.27% how it can be shown as accounting entry?
ACMA Obulirajan R
(M.Com, ACMA)
(1119 Points)
Replied 27 August 2012
@ Pawan
1st year 12-10 = 2 lacs on this service tax to be paid
2nd year service tax to be paid on full tot i.e. 15 lacs
DHDHDHDHDH
(DHDHDHDHDH)
(32 Points)
Replied 27 August 2012
Dear Mr. PAwan,
First Year Rs. 2 lacs is taxable. Next year onwards full amount is chargeable to Service tax evein if it is only ₹ 1.
Show 75% service tax as your payable amount and your receivable amount as well It is your liability to pay 75% in cash to government & you simultaneously you can take the credit of the said amount. So this 75% is Payable as well as receivable for you.
vikash rathi
(Chartered Accountant)
(787 Points)
Replied 29 August 2012
| Originally posted by : RENGARAJ R.K | ||
 |
Yes. First year 2 lacs, and for the next year the exemption is not available. You have to collect and pay the tax for 15 lacs turnover. |
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25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
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