Service Tax URD period

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2010 Dear Friends,

One of my client got his company (Public Ltd) registered under service tax on say 1st Jan,2010. He got his company registered after receiving say 25Lacs taxable service receipt (crossing 9lac limit for registration) in his bank a/c.My query is:

1) Will he get minimum exemption limit benefit on initial 10 lacs or does he have to pay service tax on entire 25lacs?

2) Will he be entitled for cenvat credit for service tax paid during Unregistered period(before 1st Jan,2010)

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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10 December 2010 You have to pay service tax on above 10 lacs , if the total receipt during the year 2008-09 was below the exempted limit. No matter whether you have paid some amount of tax prior to the registration.

Yes , you can get cenvet credit prior to registration period.

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Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2010 Dear Shailesh,

What I understand is that I have to pay service tax on 15lacs(25lac-10lac). In other words, since the company got incorporated in 2009 (hence not crossing exemption limit in 2008-09), company will get the benefit of initial 10lacs.

Thanks for your reply and feedback on this issue.