Service tax applicability

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Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2012 sir,
i asking for this querry for my friend.He is given his 2 macheines (loaders) to a cement plat as 'contract for deployment of manpower along with LOADER for plant operation'..like hired by plant...now he not registered ST since last 3-4 years ..plant asked to ST registeration.Company saying they will give the ST amount from next month...so he not took any st amount previously and no have regestration (unaware of service tax)is there any complication about previously not paid any st?please guide him replying sir.....

Amol S Joglekar

Amol S Joglekar (Expert)

08 May 2012 He will always get the BASIC |(10 lakh or 8 lakh as the case may be) limit. Above that he becomes liable for ST. It is imaterial whether he has registration or not. He has to go by the limit of ST. Let us say first year his turnover was 5 lakh. So... no question of ST. Second year, it was 750000, still no ST. Third year, although not crossed the limit, he applied for ST registration. Still he will get 8 or 10 as the case may be (Depending upon the year).Over and above this limit he needs to pay ST.

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CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)

08 May 2012 In addition as advised by Expert now if your are liable for ST previously in that case since you have not collected service tax frojm company service tax to be calculated and paid on cum tax basis, i.e. the value of taxable service shall be treated as already including the service tax portion

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