My client is providing a service of private security (Prop. Firm). In FY 2008-09 the turnover of his business was nearby 3 lacs, but in FY 2009-10 the turn over exceeds 13 lacs. In July 2009 he has registered his firm under Service Tax. But he didnt collect a service tax from some of his client & now he want to pay the same.
My question is If his sale is crossed the limit of 10 lacs, then he need to pay service tax on next 3 lacs or on total sale?
12 November 2010
Service tax is payable on receipt basis. Assuming that 13 laksh recived. On 3 laksh it would be considered as cum tax. if rate is 10% then 3lx10/110. For the delay 13% interest would be liable.
12 November 2010
Yes, They have to pay service tax only on 3 Lacs, on Receipt basis, if they have not recd the payment, then they are not liable for service tax payment.
12 November 2010
You have said u have not collected ST from some of the clients and wants to pay ST for that. If u have collected ST from ur clients within exemption limit means u may have to pay ST collected from ur clients even within the exemption limit. Otherwise u may pay ST only after crossing the exemption limit of 10 lakhs.
CAclubindia
