When to charge Service tax first time

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Deepak Parsai (Querist)
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29 August 2010 When one can charge ST first time and thereafter from client. Suppose his service provided is 9 lacs till July 2010 and he becomes register in August bcz of provides service of Rs.1000 more in August.then should he charge Service Tx on all taxable services which has provided or to be provided or not. Plz clear the situation under following 2 case :-
1. If he gets Rs. 9,99,999 in d same year.
2. If he gets Rs. 10.01 lacs in d same year.
3. If he gets above (1) or (2) in next year.
When charge and when pay to govt.?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 August 2010 1. Service tax need not be collected or paid being amount received against services rendered is less than 10 lakhs.
2. Service tax has to be collected on 1000/- and has to be paid to government.
3. If he gets (1) in next year no need to collect and pay service tax since services rendered in previous year is less than10 lakhs and amount received against services rendered in current year is also less than 10/- lakhs.
3. If he gets (2) in next year service tax has to be collected and paid to government on 10.01 lakhs since value of services rendered in previous year is 10.01 lakhs and amount received against services rendered in this year is also 10.01 lakhs.

Deepak Parsai

Deepak Parsai (Querist)
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29 August 2010 Thanks, but suppose in a year i provide services of Rs.15 lacs first time( i'm not registerd before this year) before NOVEMBER and assume i don't know how much i'll receipt against it, then if i not charge ST in invoice and receipt 11 lacs during DECEMBER, What'll be ?

Deepak Parsai

Deepak Parsai (Querist)
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29 August 2010 Thank You.

SANJAY TALATI

SANJAY TALATI (Expert)
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02 September 2010 The provisions of the Service Tax regarding to obtain the registration and the liability to service tax are different.

A service provider has to get the regn. on the crossing of the limit of service provider to Rs. 9 lacs. However, he has not to charge the S.T. till the limit touches Rs. 10 lac.
It is only when the ceiling of Rs. 10 lac exceeds during the year, the real aplicability of the ST provisions starts.

Lastly, the payt. of service tax is on the basis of the receipt of payt towards the service provided. which is the 5th/6th of the following month.

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