St applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2013 For a fresh practicing CA not having receipts greater than 10 Laks, is required to take ST registration no? If not required to take ST Reg No but if taken what are the consequenses?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

04 March 2013 The newly entered professionals need not to take service tax registration upto their taxable service exceeding Rs 9 lacs. Thus whose taxable services exceeds Rs 9 lacs has to take service tax registration but need not to collect and pay service tax till his taxable services exceeds Rs 10 lacs for the first time.

If need not to be service tax registration but at the option we taken service tax registration then we need not to collect service tax and need to be pay service to Govt till our taxable services income exceeds the exemption limit(i.e Rs.10lacs) But who has service tax registration no must and should be file service tax returns for time to time even though no service tax collection or payment liability. In case we have service tax registration but according to the act need not to collect service tax(i.e taxable income doesn't exceeded Rs 10 lacs for the first time) then you has to pay such collected service tax to the govt. In case if the taxable services exceeded Rs 10 lacs for the first time but after that year it decreases to below 10 lacs then also he required to collect and pay service tax. I.e exemption for need not to collect and pay service tax upto taxable services exceeds Rs.10lacs is only for first time from the date of new registration taken.

OM SAI SRI SAI JAI JAI SAI

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

04 March 2013 For example: Assume Mr.A is newly started their profession which services are liable to service tax on 2012-13.

Here gross receipts means: taxable services value.

During 2012-13 gross receipts is Rs.8 lacs
During 2013-14 gross receipts is Rs.9.50lacs
During 2014-15 gross receipts is Rs.10.50 lacs
During 2015-16 gross receipts is Rs.11 lacs
During 2016-17 gross receipts is Rs.9 lacs

For the above situations During 2012-13 he need not to apply for service tax registration.
During 2013-14 he has to apply for service tax registration with in one month from the date when is gross receipts exceeds Rs.9 lacs but need not to collect service tax and not to pay to govt
During 2014-15 he has to collect service tax for the gross receipts exceeds Rs.10 lacs from the receipt which exceeds Rs 10 lacs for that year(i.e has to collect and pay service on Rs 50 thousand)
During 2015-16 has to collect and pay service tax on entire receipts i.e on Rs 11 lacs
During 2016-17 has to collect and pay service tax on 9 lacs(even though below 10 lacs because gross receipts of 10 lacs at the first time already exceeds during 2014-15)

OM SAI SRI SAI JAI JAI SAI

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now