Collection & Payment of servcie tax

Save Share

This query is : Resolved

Himani Mishra (Querist)

11 April 2009 Hi

My sister has just started a recruitment consulting firm as a proprietor. She has already registered with service tax deptt.
In the last financial year, she managed to earn Rs 2 lacs on which she had even collected the service tax as per the rules. But now she got to know she does not need to pay service tax if the total income doesn't exceed Rs 10 lacs. Is it true?

What should she do with the service tax already collected? Also, she got to know that service tax payment can be adjusted with the service tax paid by self for various other services in the financial year.

For e.g - is it true that if she has collected Rs X as STax and paid Rs Y as STax (for phone bills etc) then her liability is only Rs X-Y.

Pls clarify. If she has to pay that amount then where should she go.

Awaiting an expert's reply.

Thanks

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

11 April 2009 She can claim exemption by not paying service tax upto 10 lakhs.

But since she has already collected service tax it becomes government money, she has to deposit the same to govt. account.

As per service tax whatever the service tax paid by her can be adjusted against receipt of service tax and net can be deposited.

She has to deposit throught challan for payment of service tax with the registration number already got. Since there is a delay she has to pay alongwith applicable interest.

Then file the service tax returns after paying the amount.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now