Gross receipt less than 10 lakhs p.a.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2015 A service provider is registered under service tax and obtained ST number in 2014-15 in auxiliary business services. In 2015-16 his gross income from any taxable services is not likely to exceed Rs 10 lakhs. Can he discontinue charging of service tax in his invoices, even without surrendering his registration number?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 August 2015 For the year 2014-15 the turnover has crossed 10 lacs, now he can't stop charging service tax even it is below 10 lacs for 2015-16.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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11 August 2015 He has to charge service tax from the first bill. He CANNOT avail small service provider exemption.
He can claim Small Service Provider exemption in 2016-17 if his gross receipts in 2015-16 do not exceed Rs. 10 lakhs.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2015 even in 2014-15 total taxable service gross receipts did not exceed 10 lakhs, but he obtained ST regn number and started charging service tax on invoices. He deposited ST collected and filed ST 3 as required for 2014-15. His contract with client came to end and in 2015-16 he does not expect gross receipts/ billing to exceed 10 lakhs. So can he now claim exemption from ST in year 2015-16?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 August 2015 Yes he can claim exemption in 2015-16. But what ever collected amount has to be remitted.

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