shalini (CA) (525 Points)
26 January 2016My client is providing repair services to furniture showroom. She will provide 20,000 rs. of material and 25000 of repair service. She is VAT registered in Telangana but not registered under service tax.
As far as I know she needs to charge 14.5% (standard rate) on 20,000 rs. of material and no service tax needs to be charged as she is not registered under service tax. Please confirm.
CA Aravind Penugonda
(Chartered Accountant)
(311 Points)
Replied 27 January 2016
Dear CA Shalini,
For the purpose of charging service tax, we need to look into Notification No.33/2012-ST wherein it specifies the taxable turnover for levy. According to this notification, if the aggregate value of taxable services provided from one or more premises in the preceeding financial year does not exceed 10L, then to the extent of Rs.10L in the current financial year, service tax does not attract.
However, on crossing the turnover of Rs.9L, registration shall be taken with the Service tax Department.
In your case, you need to check the turnovers for the preceeding and the current financial years and decide accordingly.
Hope it meets your requirements.
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