Exemption limit under service tax

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santosh kumar huded (Querist)
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03 November 2011 One of my client is running commercial and computer training centre.He has registered in service tax in oct,2008. He has undertaken govt.training work for which he receives amount from the Govt dept after deducting royalty.
The bills are raised by the service provider i e single bill is raised and he does not have a all copies of the bills raised by him.
He has charged and collected service tax in certain bills and has not charged nor collected service tax in all other bills, in some bills he has charged but dept has not paid the service tax amount.
sir my query is that when only tax is charged in one or two bills, whether i am eligible for exemption limit under service tax kindly note that i do not have all the copies of invioces. its really urgent

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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03 November 2011 There no such "exemption" limit in service tax. Whatever is provided is called "threshold" limit.

Once you have paid service tax in respect of one bill (or one client) you have to pay service tax in respect of all taxable services provided by you.

Even if client does not pay the amount representing service tax part, you will be responsible to pay. take an e.g.

Service provided is Rs 10000/-
Add: Service Tax 1030/-

Paid by Client Rs 10000/-

You have to pay service tax:

10000 x 10.3 / 110.3 = 933/-

Regards

santosh kumar huded

santosh kumar huded (Querist)
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03 November 2011 thanks for the reply, my question is whether i can claim the threshold limit in the above circumstances kindly reply

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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04 November 2011 No, once you have started charging service tax, you cannot claim exemption upto 10 lakh.

It means, you have to pay service tax from beginning. You cannot say that it is payable only above 10 lakh.

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