Service Tax Mandatory to be charge

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Mukesh Agarwal (Querist)
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23 October 2008 I have taken Service Tax Registration No. and during the year my receipt from providing professional services is upto Rs.4 Lacs.

Plesae let me know if there is mandatory on me for charging service tax on rendered services whether it is below the exemption limit.

Please also provide me related notification in this regard.

ASAP

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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23 October 2008 While presenting Budget 2008 in the parliament, the Finance Minister announced an increase in the exemption threshold limit for service tax liability from Rs 8 lakhs to Rs 10 lakhs.

Hence, u r not required to collect Service Tax

Mukesh Agarwal

Mukesh Agarwal (Querist)
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23 October 2008 Thanks Shailesh. But I have already registered under service tax, Is there mandatory on me to charge service tax whether receipt during the year is below exemption limit.

Please provide related notification.

ASAP

Mukesh Agarwal

Mukesh Agarwal (Querist)
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23 October 2008 Please provide above ASAP

KAMAL SETHI

KAMAL SETHI (Expert)
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23 October 2008 Dear Mukesh,

One can wait towards Registration of Service Tax uptill its turnover does not reaches Rs. 9 Lacs and should charge Service tax for turnover above Rs. 10 Lacs provided your turnover for last F.Y. was also below threshold limit. But , Since you have already got service tax registration no. you must charge service tax even your turnover is below threshold limit . Also you can avail input credit for services received.

Mukesh Agarwal

Mukesh Agarwal (Querist)
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23 October 2008 If in current year receipt of Rs. 9Lac than there is mandatory for charging the Service tax. (I have already taken service tax registration no.)