A (Engineer) (132 Points)
24 November 2008The gross turnover of my company's is 14 lakhs for IT services. So the service tax payable should be on 14-10 ( exemption limit ) lakhs or on whole 14 lakhs
What will be the service tax payable if We have collected service tax on the whole 14 lakhs. Can we return the service tax to the receipient of the service on the exempted amount
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 24 November 2008
| Originally posted by :A | ||
| " | The gross turnover of my company's is 14 lakhs for IT services. So the service tax payable should be on 14-10 ( exemption limit ) lakhs or on whole 14 lakhs What will be the service tax payable if We have collected service tax on the whole 14 lakhs. Can we return the service tax to the receipient of the service on the exempted amount |
" |
Dear Sir,
First the value of taxable services provided for which the payment is recived is what is liable. Therefore only services provided after 16.5.2008 are tobe reckoned.
Secondly only the value exceeding Rs.10 Lakhs received by you would be liable. First 10 Lakhs would not be liable.
After the crossing of the limit you would alsobe eligible for the credits on input services. If you have collected the ST from customers it is possible to return the same especially where the cusotmers refuse to pay the same.
However where the cusotmer can avail the credit there may not be any need to refund the same as that would create new issues for the customer.
Warm Regards
Madhukar
CA Hemant T Dewani
(Chartered Accountant)
(3356 Points)
Replied 24 November 2008
YOU WILL REGISTER WITH SERVICE TAX RS.9 LAKHS CROSSING THE BILLING AMOUNT
Pritesh Dholakia
(Audit Assistant )
(44 Points)
Replied 24 November 2008
for this you need to see turnover of preceeding financial year. if it crossed 10 lakh then u will be liable to service tax. and if current year turnover exceed the rs 9lakh then u required to tak registration number compulsory. for Eg.In PY2006-07 turnover is 7 lakh then for Current year2007-08 unless your turnover exceed rs 9 lakh u do not requireto pay service tax
| Originally posted by :A | ||
| " | The gross turnover of my company's is 14 lakhs for IT services. So the service tax payable should be on 14-10 ( exemption limit ) lakhs or on whole 14 lakhs What will be the service tax payable if We have collected service tax on the whole 14 lakhs. Can we return the service tax to the receipient of the service on the exempted amount |
" |
| Originally posted by :Guest | ||
| " |
Service Tax applicable yearwise. If every year gross receipts including service tax is above Rs. 10 Lakhs.(i.e Rs. 11 Lakhs ) then on what amount the service tax is applicable every year.
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Rinky jhanwar
(CA )
(94 Points)
Replied 30 November 2008
| Originally posted by :A | ||
| " |
The gross turnover of my company's is 14 lakhs for IT services. So the service tax payable should be on 14-10 ( exemption limit ) lakhs or on whole 14 lakhs hello SSI exemption is only avaible up to 10 lakhs [from first consecutive payment received during FY] if PY service rendered up to 10 lakhs condition is required to compile if no CENVAT credit is availed on input service up to 10 lakh for example Value of Taxable service provided during PY 9 lakhs 1st payment received towards taxable service FY 14 lakh so no Cenvat Credit is allowed up to 10 lakh so ST payble =12.36%on (14-10)
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manish kumar
(C.A)
(99 Points)
Replied 30 November 2008
Dear rinku,
As it is known that there is no service tax liabities Till rs 10 L turnover in a year.
Following are points to be remembered:
1. There are no statutory liabilities till turnover of Rs 900000.
2. After Rs 900000 (turnover), you required to get service tax registration in ST-1 form.
3. When your bill exceeds turover Of Rs 1000000, then service tax liabities arises.
4. Any person raising bill (his turnover is less then Rs 10L) and separately charging service tax @ 12.36%, they required to pay of whole service tax collected.
5. When assessee has only one contract of exceeding amount Rs 10L in year , (no other income in this year), he required to charge service tax on whole bill. There will be no exemption is applicable.
CAclubindia
