20 November 2012
An individual has been registered under service tax act. His turnover is less than Rs. 10 lacs. My questions are (a) Is he liable to collect and pay service tax ? If No then (b) is he required to file the service tax return because he is registered under the act ?
As per N/N 6/2005; dated 01.04.2005 the individual have the option either to opt the benefit of this notification or not and once this notification is taken by the assessee the same cannot be withdrawn during the rest part of the year.
Therefore, if the taxable services provided is less than 10lacs then it is at the will of the assessee whether he wants to take the benefit or not. IF he opts to take the benefit of this notofication then he will not charge the service tax on the billed amount.
Secondly, if a person is registered then he do have the obligation to file the return even if no service is provided by him.
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