Service tax libility
This query is : Resolved
AAYUSHI KHANDELWAL
(Querist)
08 June 2013
A person is new service provider, today he get a contract to give service Rs. 100000/- p. m. So he get Rs. 1200000 p. a.
when he liable for paying service tax and when he should file st-1.
Waiting for reply......................
when he liable for paying service tax and when he should file st-1.
Waiting for reply......................
Sumit Grover
(Expert)
08 June 2013
He is liable to get registered under service tax, when his gross turnover exceeds Rs. 9 Lakhs.
Moreover, he will be liable to pay service tax on the amount only on the services which exceed Rs. 10 Lakhs.
I.e. Till Rs. 10 Lakhs, no service tax liability shall arise. When the turnover exceeds Rs. 10 lakhs(say in the 11th month), then he shall be liable to pay service tax on balance Rs. 1 lakh only(11 Lakhs less 10 Lakhs) & not on entire Rs. 11 Lakhs
You can also refer notification no. 33/2012 for the same(which prescribed various conidtions.e.g non-availment of CENVAT, etc.)
Moreover, he will be liable to pay service tax on the amount only on the services which exceed Rs. 10 Lakhs.
I.e. Till Rs. 10 Lakhs, no service tax liability shall arise. When the turnover exceeds Rs. 10 lakhs(say in the 11th month), then he shall be liable to pay service tax on balance Rs. 1 lakh only(11 Lakhs less 10 Lakhs) & not on entire Rs. 11 Lakhs
You can also refer notification no. 33/2012 for the same(which prescribed various conidtions.e.g non-availment of CENVAT, etc.)
CA Kapil Verma
(Expert)
08 June 2013
but from next year onward the person need to pay service tax even on Rupee receipt.
AAYUSHI KHANDELWAL
(Querist)
10 June 2013
BUT SIR, ON RECEIPT OR DUE BASIS WHICH EVER IS EARLIER IS APPLY OR NOT ????????
CA Kapil Verma
(Expert)
10 June 2013
now service tax is on accrual basis.
AAYUSHI KHANDELWAL
(Querist)
11 June 2013
sir,
Service tax on accrual basis so according the above case service provider get service from one month 12 lakh during the whole year as a contact.
So he is liable for register into service tax from first month or after 10lakhs service bill or he liable to pay tax from first month.
Service tax on accrual basis so according the above case service provider get service from one month 12 lakh during the whole year as a contact.
So he is liable for register into service tax from first month or after 10lakhs service bill or he liable to pay tax from first month.
Sumit Grover
(Expert)
11 June 2013
Dear Ayushi..
It has been mentioned in the query "new service provider"...which means that previous' year turnover of taxable services was less than 10 Lakhs(since it was 0)....Hence, no need to pay service tax till 10 Lakhs during the current year, by virtue of N/N 6/2005 as amended by N/N 33/2012....
As an when his value of taxable services exceed Rs.10 Lakhs(i.e. from 11th Month onwards)....he shall be liable to pay service tax on the amount in excess o Rs. 10 Lakhs
It has been mentioned in the query "new service provider"...which means that previous' year turnover of taxable services was less than 10 Lakhs(since it was 0)....Hence, no need to pay service tax till 10 Lakhs during the current year, by virtue of N/N 6/2005 as amended by N/N 33/2012....
As an when his value of taxable services exceed Rs.10 Lakhs(i.e. from 11th Month onwards)....he shall be liable to pay service tax on the amount in excess o Rs. 10 Lakhs
AAYUSHI KHANDELWAL
(Querist)
11 June 2013
OK...............
thank u very much............
:)
thank u very much............
:)
AAYUSHI KHANDELWAL
(Querist)
11 June 2013
and registration is mandatory from first month otherwise after cross 10 lakh limit
CA Kapil Verma
(Expert)
11 June 2013
registration is compulsory at 9 lac turnover.
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