service tax problem

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kaushal vijaywargiya (Querist)

16 January 2011 i resistered (On 27.03.09) under Category of "Man power recruitment agency, supply of tengible goods for use service" we are provided the same serivce in two diffrent company.
In the priod of Apr09 to Sep'09 we Have Received an amt of Rs.17L and ST received ST-154500 Instead of 175100 Becouse One of company not paid to ST on Rs 200000 (Due to not puting in Bill for the period apr may & jun09).

We are deposit the ST-154500. Now STax Dept demand the ST-20600 Rs which company not given to me.

can i get basic exemption limit benefit from very first year or not.
or any other solution on this matter.

Thanks

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

16 January 2011 What was the turnover in the year 2008-09, if it is below 10 lacs,service tax will apply turnover above to Rs. 10 lacs.

You will get the exemption since it is your first year.

CA Gunjan H Shah

CA Gunjan H Shah (Expert)

16 January 2011 The exemption will not apply if you have charged Service Tax once, The exemption needs to be taken continuously, one cannot take exemption for 1 bill and charge tax on another. the 2 lakh reced by you, calculate backward as if that 2 lakh is inclusive of Service Tax. (ST + Cess would be 18676) , then afterwords if company pay remaining amount again go for backward calculation and pay remaining 2000 (approx) ST.

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NISHIT A. DOSHI

NISHIT A. DOSHI (Expert)

17 January 2011 Hi,

In my opinion, as the turnover of the taxable service for F.Y.2008-09 does not exceed 10 lakhs , asessee can get an exemption from service tax on the first receipt of Rs. 10 lakhs.

After that asessee is required to pay the service tax on the taxable value of services provided.

Another important thing to note here is that service tax is required to be paid on the receipt basis and not on due basis.

In other words, service tax is payables only when service provider receives the value of taxable services provided from service receipient.

I hope this will clarify the doubt.

Regards,
C.A.NISHIT DOSHI

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