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CA Sanjay Baheti (Querist)
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01 February 2011 A chartered accountant has rendered taxable services for a value of rs. 9 lacs. In the same year he gets a bank audit assignment which would take his taxable service beyond the threshold of 10 lacs. In this case, how will he raise a bill for the bank audit services because a portion of the bill would be within the threshold and balance only would actually be taxable. However, to the bank, you have to intimate whether you are liable for service tax or not and levy service tax if it is applicable.What is the methodology for raising the bill, filing returns and payment of tax as you would have collected service tax on the total bill value and not on the amount exceeding the threshold. Learned forum members views solicited.Thanks

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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01 February 2011 in this case you have to caluclate ST on only the portion which is liable for service tax and show the same in the invoice (giving break up in the said invocie).

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