Who is liable to charge service tax on bill

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Ravinder chandel (Querist)
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27 October 2012 WHO IS Liable to charge service tax on bill ,means what is the billing amount limit for charging of service tax on bill.?????????

CA Sahil Singla..

CA Sahil Singla.. (Expert)
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27 October 2012 As and when turnover of Service Provider Exceeds Rs.10,00,000, he need to charge Service Tax on the very next Rupee.So, in case bill issued increases turnover to more than 10,00,000 then Service tax becomes applicable.
There is no Bill wise Limit.Thing which matters is Turnover of Service Provider.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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28 October 2012 Yes I agree with the expert Sahil and there is no specific bill in which you are liable to charge service tax. It might be 100 bills or even more and your turnover total does not exceed 10 lacs even then you are not liable to charge service tax. Service tax is not bill wise but a minimum turnover is set out and if that exceeds then you are liable to charge, collect and pay. It is for your further information that once you have charged the Service tAX you cannot retain it with you, you must deposit with the government and for payment of ST now you cannot wait for the person availing the services to pay. It is to be paid as soon as you have charged in the bill on the due date of payment.

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