I have registered a new company, and have applied for service tax registration. Do I have to collect and remit before I cross the 10 lac limit. Also, if in the financial year my limit exceeds let us say in Dec 2014, do I need to collect tax on the previous 10 lacs as well or collect and pay over 10 lac fee?
SG
| Originally posted by : SG SG | ||
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I have registered a new company, and have applied for service tax registration. Do I have to collect and remit before I cross the 10 lac limit. Also, if in the financial year my limit exceeds let us say in Dec 2014, do I need to collect tax on the previous 10 lacs as well or collect and pay over 10 lac fee? SG |
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Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds Rs. 9 lakhs shall be required to seek registration under service tax.
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Since you have taken voluntary registration, you may take the benefit of threshold exemption available under Notification No. 33/2012-ST, dated 20.06.2012.
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This notification provides exemption to small service providers of taxable services of upto Rs. 10 lakh, provided the preceding financial year taxable services do not exceed Rs. 10 lakh. As you are starting a new business, so there is no issue of preceding year in your case. But the exemption is subject to certain CENVAT conditions prescribed in the notification.
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If the limit of Rs. 10 lakh exceeds during Dec’14, then you will be liable to pay service tax on taxable services after Rs. 10 lakhs.
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