Liability of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2015 Hello Experts,

My client is registered under service tax from 7 years but as his limit is less than thresold limit he does not charge service tax and regularly files NIL return , kindly clarify the below points :-

a) is it mandatory to charge service tax if we have ST registration even if the limit has not crossed the Thresold limit in previous year ?

b) the assessee may cross 10 lacs of service this year, whether he needs to charge service tax after crossing 10 lacs or from the 1st invoice raised during the year.

c) during previous year my client had service invoice raised for apprx 8 lacs, do we need to submit NIL returns showing zero amount or declare the amount quaterly and claim exemption , if yes, do we need to mention any circular no.?

Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 July 2015 a) No need to charge service tax if the limit has not crossed even you have registration.
b) He needs to charge service tax after crossing the limit.
c) Submit Nil return half yearly claim exemption under NN 33/2012.

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2015 Thanks Mr. Seetharaman for quick reply,

Kindly clarify,

the client has crossed 5 lacs during current year and he wishes to collect the service tax from current invoice, can he start collecting or should he wait to cross 10 lacs,

if the client starts collecting before crossing 10 lacs will ST department not raise the liability for earlier invoices ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 July 2015 He should wait to cross for the first year. From next year service tax payable from Rs 1. no exemption of 10 lacs.
ST department will not raise any liability for earlier invoice.

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