Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Service Tax Liability

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2009 A company incorporated in april 09 reaches a sale figure of around Rs.12 lacs as on september 09.It has been incurring expenses which includes expenses on which service tax was being paid since april 09.It did not charge or recover service tax till sep 09 while raising invlices.It gets registered under service tax in nov.09.
Questions:

1.In its return for first HY of sep 09,will its liability be limited on the amount over and above Rs.10 lacs?
2.Can it claim all input credit service tax which was being paid since april 09?

Gokul

Gokul (Expert)
Follow

21 November 2009 1. In eirst HY of sep 09 it's liability be limited to the amt. over n above rs. 10lacs.

2. It can't claim all input credit of service tax which was being paid since april 09 but can be claim input service tax paid on input services for output services on which service tax levied.

While calculating service tax liability invoices of services provided over rs. 10 lacs will be concidered as including service tax. ST shall be calculate on revers basis.

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