Charging of service tax on services provided

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Guest

Guest (Querist)

21 January 2014 If Service Tax Registration is taken, does it then necessary to collect Service Tax though turnover is less than Rs. 10,00,000/-?

AVTAR SINGH

AVTAR SINGH (Expert)

21 January 2014 If in the previous financial year aggregate value of taxable services provided was less than 10 lakh but this year aggregate value of taxable services provided is more than 10 lakh them you start paying service tax after crossing the threshold of Rs 10 lakh (not from the date of registration).

But If in the previous financial year aggregate value of taxable services provided was more than 10 lakh but this year even if the aggregate value of taxable services provided is less than 10 lakh them you start paying service tax from rupee one.

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Guest

Guest (Querist)

21 January 2014 This is the first year only. The Company is yet to cross 9 lakhs. But they have taken it voluntarily considering financials in next 2 months. In this case do they need to raise bills with charging ST?

AVTAR SINGH

AVTAR SINGH (Expert)

23 January 2014 Upto Rs.10 lakh, they may not charge service tax.

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