service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2010 I am doing fabrication and installation work, but not registered in service tax.
Annual billing of installation goes about eight lac.Can I chagre service tax or not,
currently we are writting NA in the column tax on bill.please guide me

BHAI(SAI) DUPARE

BHAI(SAI) DUPARE (Expert)
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08 December 2010
Small service providers are exempted from service Tax where value of taxable service does not exceed Rs. 10 Lakhs in the previous financial year

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Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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08 December 2010 As per the provisions of Finance Act, 1994 and Service Tax Rules made thereunder, if the total turnover of the assessee from all services is below Rs.900,000/- (Rupees Nine Lacs only), no liability arises on the service provider.

On crossing Rs.900,000/- it is essential for the service provider to register himself. Total billing to the extent of ten lacs is exempt from tax. On the turnover exceeding Rs.10,00,000/- service tax should be collected by the service provider.

Please note that collection of service tax without registration is a criminal offence. Further, if registered, any amount collected by a service provider should be deposited to the credit of the Government and necessary returns filed.

In the present circumstances, the action you are taking is perfectly acceptable.

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