Taxation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2011 I started business aon 1/9/2010 nd i have provided service worth rs. 12 lacs till 31/3/2011,out of i have recieved rs. 2 lacs for which i have not provided any service and i have refunded that amount,so will i be considered as SSP,and what will be my tax liability?

CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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26 March 2011 Ur liability of service tax on Rs. 2 lacs upto 10 lacs u not need to pay service tax also upto Rs.10 lac u also can not take input credit, it does not matter u refund 2 lacs rs.........................

CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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26 March 2011 but in 2011-2012 u will pay service for whatever amount of service provided even less than for Rs. 10 lacs because benefit of Small scale service provider available on basis of last year and u provide service for Rs. 12 lac in 2010-2011,