LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Service tax

DATTATRAY (PROPRIETOR) (68 Points)

05 February 2016

I HAVE STARTED MY BUSINESS ON 01/04/2015 OF TOURS AND TRAVELS. AND NOW I HAVE TO PAY SERVICE TAX AND FILL RETURN OF THE SAME FOR THE PERIOD APRIL TO SEPTEMBER 2015. TOTAL RECEIPTS DURING THAT PERIOD IS 522500. HOW SHOULD I CALCULATE MY SERVICE TAX PAYABLE

Reply
Follow
Share

16 Replies

Govind Shah (CA Final) (75 Points)
Replied 05 February 2016

Dattatray,

We cnt just arrive at the service tax payable on looking at your recipts. We have to check your invoices as there was a rate change in the month of june.

1 Like

AmolM (Audit Assisstant) (55 Points)
Replied 05 February 2016

Service Tax act/Rules has provided exemption to small scale service provider from service tax up to aggregate value of taxable services provided of 10 lakh in a Financial Year.

There is no need to collect & pay Service Tax till your aggregate value of services does not exceed Rs. 10 lakhs in F.Y.2015-16. Once it exceeds, service tax is payable on the receipts exceeding Rs. 10 lakhs & no need to pay on intial receipts of Rs. 10 lakhs.

Apply for Service Tax Registration Number within 30 days the value of receipts exceed Rs. 9 lakhs in a financial year.

However, if the value exceeds Rs. 10 lakhs in FY 2015-16, then you will have to collect & pay service tax from Re.1 in the F.Y. 2016-17 even if the aggregate value of services provided does not exceed Rs. 10 lakhs.

Service Tax Applicability on Tour Operator:

Taxable service	Taxable Value	Old Effective Rate up to 31.05.2015	New Ratew.e.f. 01/06/2015
(i) Tour service –package tour	25%	3.09%	3.50%
(ii) Tour service –service solely of arranging or booking accommodation for any person in relation to a tour	10%	1.24%	1.40%
(iii) Tour service – simple tour services	40%	4.94%	5.60%

1 Like

Arpit Aggarwal (Accountant) (82 Points)
Replied 05 February 2016

Sir,

I want to start a business of transporter and doing plan for taking service tax no. due to banker's required any registration certificate for a/c open in the name of Firm. my query is that if my total receipts wil be Rs. 6-7 lac per annum then i have to pay tax on in this receipts or will be fill return as a nill or exempted.

i am too confuse about that please suggest anyone.

Thanks & Regards

Arpit Aggarwal

GunaRanjan (Superintendent of Central Excise) (21 Points)
Replied 05 February 2016

As your expected income from services to be provided by you are less than threshold limit of Rs. 10 Lakhs, per annum you don't have to obtain Service Tax registration in the first place. If you have to obtain Service Tax registraion for the reasons mentioned by you, obtain service tax registration and file NIL returns

regards

GunaRanjan

Arpit Aggarwal (Accountant) (82 Points)
Replied 05 February 2016

Thanks a lot sir.

MURALI S (Articled Assistant) (21 Points)
Replied 06 February 2016

Whether service tax is applicable for penal interest charged by banks.

Swamy (Article) (116 Points)
Replied 06 February 2016

If service tax collected even the assesse turnover within then exemption(for registration) ceiling limit, has to be registered and has to pay service tax and need to file ST3. Please let me know if I'm wrongly understood.

Debashis Sengupta (Consultant) (27 Points)
Replied 07 February 2016

Sir,

Since my consultancy income amount was exceeding 10 lakhs, I did obtain service tax registration and collected service tax and filed return accordingly. But from FY 2016-17, income will be below 10 lakhs.Do I have to continue collecting service tax and file return? Or shall I cancel my registration and do not collect service tax?

Debashis Sengupta