About service tax payment

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Asha Shazhad

HR-executive

23 Points Posted on 13 March 2014

Sir,

Once the firm annaul revenue exceeds 10,00,000/- after that the firm is necessary to pay the service tax for every month income.

Example:

in 2012-2013 Annual Revenue : 12,00,000/-

Service tax will be calculated for Rs.2,00,000/-

in 2013-2014 Annual revenue :8,00,000/-

is it necessary to pay the 2013-2014 service tax else not?

Kindly give me a clariffication about that topic....

Replies (13)

Manoj Mehta

Head Of Department (Accounts & Finance)

1272 Points Posted on 13 March 2014

Dear Asha

When a Small service provider provide more than rs. 9 lakh service in a year than he should get himself registered under service tax. Once he get registered he has to pay service tax and file his returns. Your doubt is whether it will be applicable in 2013-14? answer is yes, because when you got registered you have to give your clients bills(in which you have charged service tax amount) which you have to pay to govt. This rs. 10lakh exemption is for the first year. I hope you got the point.

Regards

Sunil Kumar

Indirect Taxation

1146 Points Posted on 13 March 2014

In 2013-14 you need to charge service tax from inception since the exemption is based upon last year and u ve provided service of Rs 1200000 (I.e. > 1000000)... And note that in next year u need to charge tax after billings of 100000 as u provided service of Rs 800000

Manoj Mehta

Head Of Department (Accounts & Finance)

1272 Points Posted on 13 March 2014

Dear Sunil

are you saying that they are going to get 10 lakh exemption every year?? if you are saying this then i advice you to see the provision and rules of service tax.

10lakh exemption is for registration in service tax and not for the payments of service tax.

Regards

shubham

ipcc

23 Points Posted on 13 March 2014

service tax fr 13-14 shall be charged on 8lac. as the revenue in previous year exceeds 10lac.

Rakesh

Accountant

28 Points Posted on 13 March 2014

No further exemption after registering service tax

Hsk

Student CA Final

135 Points Posted on 13 March 2014

If the previous year turnover was taxable in service tax then the next year's turnover will also chargeable to tax.

MUKESH LOKHANDE

ARTICLE ASSISTANT

22 Points Posted on 13 March 2014

We can't take exemption every year. It is ur duty to charge & collect service tax on every bill seperately from 2013-14. If u fail to do so, the amount u ccollect from party is deemed to be inclusive of service tax & u r liable to pay ST

rekha agarwal

26 Points Posted on 13 March 2014

As the services provider is a reg service provider services provided by him will be taxable ..so yes it is taxable.

rekha agarwal

26 Points Posted on 13 March 2014

As the services provider is a reg service provider services provided by him will be taxable ..so service provider have to pay tax.

Manoj Agarwal

Service Tax Consultant Rourkela Service

2755 Points Posted on 13 March 2014

Agree with sunil kumar. All must kindly read Notification No. 33/2012-ST dated 20-06-2012 which exempts aggregate value of taxable services upto Rs. 10 Lacs upon condition that the same was not exceeding Rs. 10 Lacs in the preceding year.

So in the given case, for FY 2013-14, service tax need to be discharged from Re. 1 as exemption is not available due to turnover exceeding Rs. 10 Lacs in FY 2012-13.

In FY 2014-15, threshold exemption can be availed upto Rs. 10 Lacs as turnover was less than Rs. 10 Lacs in the FY 2013-14

ASHUTOSH NEOGI

SERVICE

29 Points Posted on 13 March 2014

yes, once u cross the limit of 10 lakh in any previous year u/notification no 06/2005 ST you must take registration under service tax and have to charge and pay service tax in next years even if for that particular year your turnover is less than 10 lakhs until u surrender ur registration.

Rahul Rana

practise

30 Points Posted on 13 March 2014

Asha as st rules to availe the exemption for 10 lac again first you to unregister yourself from service tax department when your services are less than 10 lac after paying ST on it .then after in next year not pay St up to 10 lac services and if service exit 10 than again get register himself under service tax and pay tax on above 10 lac services .