Regarding Service tax Liability Calculation

Save Share

This query is : Resolved

Pavan Kumar Rathi (Querist)
Follow

20 November 2009
Following were thepoint to be noted:
1.Assessee has been following cash basis of accounting(i.e. not mercantile)
2.During First year he has provided more than 15 lakh value of services but received only RS 6,50,000/-
3.During second year he has provided RS 21 Lakhs Valuable Servicesbut received only 9.5 Lakhs

for above asseessee has not collected & raised invoice inclusive service tax.
4.during third year by january he has received Rs 10 lakhs. so he started to raise invoices inclusive of Service Tax.and provided 22 Lakhs services during the 3rd year.
5.From 4rth year onwards he has providing below 10 lakh value of Services and amount received also below 10 lakhs only continuosly for 3 years

What is the Service Tax Liability of each year
( Note:Applicable rate of service tax is 10.3%)

Thank You.

BALU V

BALU V (Expert)
Follow

23 November 2009 ST is only on the receipt of money and not on the invoice raised. The main condition for availing the exemption is that the value of service rendered during the previous year should be below 10 lakhs from April 2008 onwars. If the value of service rendered is below 10 lakhs means there is no ST. Year is not specified in the query. If not clear write again.

Pavan Kumar Rathi

Pavan Kumar Rathi (Querist)
Follow

24 February 2010 Thanks a lot, i have resolved all my issues,

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