For payment of service tax

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naveen banger (Querist)
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10 August 2013 sir
a client cross a limit of 10 lacs and he registered under service tex then thereafter in following years will he liable to pay service tax on every receipt of amount?
for exp.
year receipt
2010 10 lacs
2011 2 lacs
2012 5 lacs
2013 7 lacs

CA Suresh Jain

CA Suresh Jain (Expert)
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10 August 2013 Assuming your client crossed Rs. 10 lakh of taxable services in FY 2009-10. AS PER NOTIFICATION 6/2005 AND 33/2012, YOUR CLIENTT NEED TO PAY SERVICE TAX ON 2010-11 and on 5 lakh and 7 lakh for 2011-12 and 2012-13 respectively your client need not pay any service tax

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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10 August 2013 Once you have registered with ST, you have to charge service tax on every bill generated by you (provided the service is taxable)until your registration is cancelled/surrender.

so you have to pay service tax on every bill regardless of quantum of your service until you hold service tax registration.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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11 August 2013 As per the notn 33/2012

2. The exemption contained in this notification shall apply subject to the following

conditions, namely:-
(viii) the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.

So, once you have crossed 10 lacs in the previous year exemption is not available as per the above notn.

CA Suresh Jain

CA Suresh Jain (Expert)
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11 August 2013 Applicability of service tax is not dependent of registration.

Registration is required when value of service crosses 9 lakh but service tax is payable only when value of taxable service crosses 10 lakh.

Mr. Rengraja supported my view only. Since, in previous year to 2011 taxable service exceeded 10 lakh service tax continues to be payable in year 2011 even the amount of service tax did not exceed 10 lakh.

But, for year 2012 service tax is not payable as aggregate value of service has not exceed 10 lakh in the year 20111 nor in year 2012

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