I am a consultancy service provider. My annual turnover on accrual as well as on cash basis in FY 2012-13 was 6 lakhs so I didn't apply for registration under service tax rules. in FY 2013-14 my turnover on accrual as well as on cash basis exceeded RS 10 lakhs. I registered myself with service tax on 1st April 2014. My turnover in FY 2014-15 as also in FY 2015-16 has been less than 10 lakhs on either basis. Nature of services provided required me to incur travel and lodging boarding expenses. I have 2 queries as under:-
1. What penalty and interest I am liable to pay on the service tax not paid for the amount exceeding 10 lakhs for the FY 2013-14.
2.Can I treat actual turnover by reducing the amount incurred on travel, lodging and boarding as such amount is not a part of any financial benefit in the services provided.
Thanks
Subhash sood
The Gross amount charged for the consultancy services rendered by you is the value of the taxable services on which service tax is to be paid. Reimbursible expenditure such as travelling, lodging or boarding expenses shall form part of the Gross amount and is not allowed to be deducted from the GAC. The maximum penalty for not obtaining the registration is Rs. 10000. The maximum penalty for not filing /late filing the return is Rs. 20000.
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