When a assessee liable to pay service tax
This query is : Resolved
15 November 2010
I have a small doubt, If Mr. x has been provided service of Rs. 25,00,000.00 during the financial year. Is he liable to pay service tax in which case?
a. If he recd Rs. 8,50,000.00
b. If he recd Rs. 12,50,000.00
a. If he recd Rs. 8,50,000.00
b. If he recd Rs. 12,50,000.00
15 November 2010
a no
b yes as service tax is payable on receipt basis.
b yes as service tax is payable on receipt basis.
15 November 2010
Dear Santosh
I assume that Mr X has first year of business in which the turnover has crossed 10 Lakhs.
Since Mr X has billed for a total of 25,00,000/- during the year he would have charged ST over and above Rs 10 Lakhs of billing.
If out of billing in which he has charged ST he has Received the Payment then even if the total amount received during the year does not exceed Rs 10 Lakhs he has to pay ST for the bill of which he has received the payment.
E.g
1 st Bill ---------- Rs 500,000/- {No ST}
2 nd Bill ---------- Rs 500,000/- {No ST}
3 rd Bill ------ Rs 300,000/-{ST Rs 50,000}
4 th Bill ---- Rs 1200000/-{ST Rs 150000}
Payment Received for 1st and 3rd Bill
Total Receipt is Less than Rs 10 Lakhs but still ST is to be Paid Rs 50000 in this case.
I assume that Mr X has first year of business in which the turnover has crossed 10 Lakhs.
Since Mr X has billed for a total of 25,00,000/- during the year he would have charged ST over and above Rs 10 Lakhs of billing.
If out of billing in which he has charged ST he has Received the Payment then even if the total amount received during the year does not exceed Rs 10 Lakhs he has to pay ST for the bill of which he has received the payment.
E.g
1 st Bill ---------- Rs 500,000/- {No ST}
2 nd Bill ---------- Rs 500,000/- {No ST}
3 rd Bill ------ Rs 300,000/-{ST Rs 50,000}
4 th Bill ---- Rs 1200000/-{ST Rs 150000}
Payment Received for 1st and 3rd Bill
Total Receipt is Less than Rs 10 Lakhs but still ST is to be Paid Rs 50000 in this case.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Subscription paid to foreign customer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
