Service tax liabilty

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This query is : Resolved

CA Sanjay Baheti (Querist)

22 January 2011 A service tax provider providing taxable service in his individual capacity. The threshold limit is Rs 10 LACS. He has obtained Registration after crossing limit of Rs 9 LACS. In the subsequent month his payment is crossing Rs 10 lacs by a marginal amount of Rs 10,000/- what will be taxable amount for this month payment . Is it on Rs 10,000/- or on total amount of this month payment or on the whole amount including exemption of Rs 10 lacs. The service provider has provided service in the current Financial year.

B R Ramesh

B R Ramesh (Expert)

22 January 2011 Hi

Service Tax to be paid next to 10 Lakh.

because the threshold Limit is 10 lakh.

therefore the ST caluclated on Rs.10000/- at the rate of 10.3% ST.

if the ST is not collected on 10000/-

you need to do the reverse calculation & pay the st i.e ( 10000 X 100/110.3)

value is 9066

ST @ 10.3% is 934

total 10,000/-

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