Liability of service tax

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This query is : Resolved

S. Y. Chandrachud (Querist)

05 August 2012 As per amendment wef 01.07.12 now other than advocates who are giving services in taxation field are liable for service tax. Now the registration is required to be taken.

There is exemption of turnover of Rs. 10 Lakh. My query is about turnover & liability wef

1) From which date service tax registration to be taken or liability starts ie 1st April or 1st July 12

2) If my receipts are more than Rs. 10 lakh in F.Y. 2011-12 can I claim exemption of Rs. 10 lakh during the f.y. 2012-13 up to Rs. 10 lakh receipts.

RENGARAJ R.K

RENGARAJ R.K (Expert)

05 August 2012 The services of tax consultants are taxable in the 1st April 2012. And hence the answer for your two queries are given below.

1) The liability starts when you cross 9 lacs in this current year starting from April 12.

2) From this year, the basis of exemption calculation is amended i.e from this accounting year onwards, the value of 10 lacs is not on receipt basis and it is on accrual basis. For e.g you have raised bills for 10.5 lacs but clients settled only 8 lacs and even then you have to take RC and can collect service tax for 50 thousand and have to pay the tax for 50K.

Kaushik Vinod

Kaushik Vinod (Expert)

06 August 2012 1.
You are liable to get registered with in 30 days from the date when your turnover exceeds rs. 900000 as per notification 26/2005 and turnover shall be counted from the Ist April onwards.

2.Yes you can claim exemption of Rs. 10l and pay service tax after that as per notification 6/ 2005 as superseded by notification 33/ 2012.

Regards

CA Vinod Kaushik

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