Need of registration number

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2013 when a firm need to register under service tax ?
when should it pay their first service tax and on how much amount?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

04 March 2013 If the firms total taxable services value exceeds Rs 9 lacs it has to take service tax registration with in one month from the date of exceeding of such limit but upto turnover exceed Rs 10 lacs for the first after taking registration it need not to pay service tax. For the first time on the amount which exceeds the basic exemption limit(i.e Rs.100000) you have to collect service tax and pay service tax on such exceeded amount.

For example for the 1st year taxable receipts Rs 8 lacs need not to take service tax registration.

In the second year by December it reached 9 lacs receipts then has to take service tax registration with in January but need not to pay service tax but for the second year gross receipts is Rs.1050000 at the ended of the year then has to pay service tax on Rs.50000 only

And from the third year from the first receipt it has to pay service tax.

IN case in the second year also taxable receipts not exceeded 10 lacs but exceeded in third year then(i.e not exceed in the year of taking of registration but exceeded in the next year of registration taken) then has to pay service tax on the amount of excess of Rs. 1000000 in the third year and from fourth year from the first receipt it has to pay service tax.

OM SAI SRI SAI JAI JAI SAI

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now