Service tax

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This query is : Resolved

krishantaneja (Querist)
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04 December 2011 Dear Seniors, please help !

I have started my small consultancy firm during the current FY only. My income so far is less than Rs.1 Lakh. Under some assumptions, I have recently obtained Service Tax Registration, even though I was aware that the minimum criterion for applying for Service Tax Registration is an income level of Rs.9.00 Lakh. My queries are :
(1) Now, since I already have a Service Tax Registration, do I have to compulsorily charge Service Tax to my clients ?
(2) What will happen if tomorrow my clients come to know that they have paid me Service Tax unnecessarily ?
(3) Can I avoid charging Service Tax under the pretext that my income is less than Rs.9.00 Lakh ?

With warm regards,

Krishan

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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04 December 2011 no need to collect service tax till it reaches 10 lacs

but if you collect than same to be paid

9 lac exemption is one time

CA Deepak S

CA Deepak S (Expert)
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05 December 2011 No need to collect service tax till the date the total bills raised does not exceed 10 lakhs. Since you have taken registration hou have to file the return on time.

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