Help for service tax

Service tax is payable on the amount exceeding the threshold limit if and only if you have no taxable turnover during the last year. Otherwise it is fully taxable.

Dear Seniors & Friends,

For E Filing of ST-3 Return which is mandatory from 01/04/2011, I have received user ID & Password from the Service Tax Department & changed it according to my choice. Now I eager to know what is the next process ? Should I fill ST-1 Registration Form further online to activate Half Yearly ST-3 Return mode ?

Thank you in advance.

S.P.Basu

Accounts Executive

Thanks Sir, so service tax is payable on whole receipt which is raised in June or only on balance (eg:if bill raised up to May 2011 is Rs800000 and bill of Rs300000 is raised in June.so service tax is payable on Rs300000 or on Rs100000(1100000-1000000)?

As per NN 6 dated 01.03.05 last amended by NN 8 dated 01.03.08, assessee is not required to pay service tax on initial payment RECEIVED up to rs. 10 lac if, inter alia, aggregate value of taxable services RENDERED in the preceding financial year does not exceed rs. 10 lac. Thus it is clear that you have to pay service tax in respect of amount received in excess of Rs. 10 lac. In other you need not to pay service tax upto 10 lakh rupees but any amount received after 10 lac is subject to levy of service tax. You can get the benefit of above NN only if u satisfies the conditions given in said NN.

Dear Basu,

If you have already file ST - 1 in mannual form and have just switched over to e-filing, you need not fill ST - 1 again.

Where you are a new assessee who wants to be registered as assessee with Service Tax Department for the first time, you are required to fill ST - 1. In case of new assessees, the options for filing ST - 3 are highlighted only after issue of ST - 2.

Where you are already registered with Service Tax Depatment, as per the facts provided by you, you have completed all required formalities and now you can proceed to fill your ST - 3 return.

This is with reference to Jyoti's query.

A registered Service provider is required to charge & pay service tax from service receivers on crossing the threshold limit of Rs.10 lakhs for the first time.

To illustrate suppose X a service provider provides Services as follows:

Year 1                                     Rs.8.00      lakhs

Year 2                                     Rs.9.20      lakhs

Year 3                                     Rs.9.50      lakhs

Year 4                                     Rs.11.00    lakhs

Year 5                                     Rs.8.50      lakhs

In the above case, X is required to get Service tax registration during Year 2 (as he crossed threshold limit of Rs.9 lakhs for registration).

No Service Tax is required to be paid for Year 1, Year 2 or Year 3 as Threshold limit has not been crossed.

X will be required to charge Service Tax and pay it to Department from Year 4 (on crossing threshold limit of Rs.10 lakhs for payment of service tax). Tax will have to be paid on amount exceeding Rs.10 lakhs for that year.

Though where X has charged service tax on any invoices issued before crossing the threshold limit of Rs.10 lakhs, the same will also have to be paid to the department.

For Year 5 Service Tax will have to be paid on whole amount of Rs. 8.50 irrespective of whether it exceeds Rs. 10 lakhs or not.

I agree with Mr Prabhat Gupta.

Originally posted by : PUNEET GOYAL
	As per NN 6 dated 01.03.05 last amended by NN 8 dated 01.03.08, assessee is not required to pay service tax on initial payment RECEIVED up to10 lac if, inter alia, aggregate value of taxable services RENDERED in the preceding financial year does not exceed10 lac. Thus it is clear that you have to pay service tax in respect of amount received in excess of10 lac. In other you need not to pay service tax upto 10 lakh rupees but any amount received after 10 lac is subject to levy of service tax. You can get the benefit of above NN only if u satisfies the conditions given in said NN.

I totaly agree with puneet.

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service tax software e-Filing Tool.
 

nice point of discussion, appreciate members on the board.