Service tax query
Adi (Others) (59 Points)
24 January 2015
Santhosh Kumar
(CA-FINAL)
(78 Points)
Replied 24 January 2015
No
Two situations we need to evaluate to decide whether to collect ST or not
1.IF IN THE PREVIOUS YEAR(PY) THE VALUE OF TAXABLE SERVICES IS LESS THAN Rs.10LAKHS
If the value of taxable services exceeds Rs.10 Lakhs (during the current year) only then the service tax to be collected. ST to be collected on the amount exceeding Rs.10Lakhs.
2.IF IN THE PY VALUE OF TAXABLE SERVICES EXCEEDS Rs.10 LAKHS
from the very 1st rupee of Taxable service we have to collect Service Tax.
Once the value of taxable service exceeds Rs.9 Lakhs, within 30days we need to get ST Registration.