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Basic exemption limit

sanjeevcjos@gmail.com (sanjeevcjos@gmail.com) (25 Points)

06 May 2012

What is the basic exemption limit under service tax? we have three month old outsourcing firm and we are raising bills from february and charging service tax from our clients. Should we file return for the last financial year?

Rgds

Sanjeev

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14 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 06 May 2012

Yes. You will have to file the Service Tax Return for the corresponding period.

Regards,

Devendra Kulkarni

CA Atul Chauhan (CA Practice) (198 Points)
Replied 06 May 2012

10 lakhs

D.P.Pattnaik (manager( taxation)) (100 Points)
Replied 07 May 2012

Basic exemption is turn over more than Rs.10.00lakh.But if u have registered

under service tax act & charging ST on the bill to client,then u have to file

return.

Sonu Kumar (Account Manager) (665 Points)
Replied 07 May 2012

If you Have charges service tax then u will have file the return and deposit the service tax in department.....

PANKAJ AGARWAL (practising Chartered Accountant) (136 Points)
Replied 07 May 2012

basic ecemptiojn limit is Rs 10 lakhs but you have collected service tax from your clint so you have to deposite the same & file the return for that preiod

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 07 May 2012

If you are registered under Service Tax and also collecting the same from your clients, then you have to file return for the previous period. Regards Prateek

Ramanuj (Accountant.) (834 Points)
Replied 07 May 2012

Basic exemption limit is 10 lakh. if you are registered with service tax , return file is must.

Thanks

Ramanuj

Akash Jain (CA Final Student) (261 Points)
Replied 07 May 2012

The liability for compulsory registration arises if your turnover of taxable services goes above 9 lakhs in an accounting year with 30 days of applicablility.

But in your case as you mention that you have collected the service tax from your clients you need to pay that collected amount as well as file the return for the same.

Akash Jain (CA Final Student) (261 Points)
Replied 07 May 2012

Originally posted by : Akash M Singhvi
	The liability for compulsory registration arises if your turnover of taxable services goes above 9 lakhs in an accounting year with 30 days of applicablility. But in your case as you mention that you have collected the service tax from your clients you need to pay that collected amount as well as file the return for the same.

Rajaram (CA Practice ) (46 Points)
Replied 07 May 2012

If you collect ST,you have to pay.

Ashutosh kumar Maurya (Finance Internal Audit Taxation and Accounts) (33 Points)
Replied 07 May 2012

You should file return for said period, Max. Exmption Limit of Service TAx is Rs. 10.00 Lakhs P.A.

Naveen (ASC) (53 Points)
Replied 15 May 2012

I think Akash Jain answer is quite accurate , need 1 confirmation on that ...

1) If turnover of company is less than 9 lacs then it has no obligation or legality to get registered and what if they are also not collecting ST, ?does it mean no action needed, correct ?

2) is there any choice or freedon to collect ST if turnover is less than 9 lcs and collect if more than 9 lacs or it is based on nature of business and if business needs to collect ST but not collecting then what ?