Availability of service tax exemption limit

Dear members,
Please let me clear on the following issue.
 A private limited company raised only one invoice of  Rs. 50000 (No additional charges against the service tax has been collected), for which it has received  Rs. 25000. The invoice is for branding services. Even though invoice is raised no service is rendered till date: Here my query is how should I have to file the service tax return for the first half year. Is the company elegible for exemption notification of 6/2005 and 8/2008. if no then on which amount should I hvae to pay the service tax. Please let me know. It is urgent as I have to file the return for the first half year before 26-12-2011.

Replies (4)

As you have raised invoice it is deemed that you have provided service. Is it not so?. You need to pay ST on 50000 as per POT rules 2011 if the invoice is after June 1. If you still say there is no service, the officer might argue you have received advance which is also liable to be taxed.

Regards,

Originally posted by : Dipjyoti Majumdar


As you have raised invoice it is deemed that you have provided service. Is it not so?. You need to pay ST on 50000 as per POT rules 2011 if the invoice is after June 1. If you still say there is no service, the officer might argue you have received advance which is also liable to be taxed.

Regards,

Dear friend,

What about the exemption limit and con't I elegible to avail the exemption as the total turnover is not exceeded the limit prescribed in the notification. Please answer in total for my query..

And withregard to the POT rules 2011, the company has raised the invoice in July'11 and advance received in August'11. Actually the company has not rendered any services eventhough the invoice is raised. Please clarify

 

In case you are within the tax exemption limit, the question of paying service tax does not arise.

what is the exemption limit on service charge? i am proprietor , self employed, money exchange business.

 

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