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
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.
CAclubindia
