Dear Friends,
1) My new coaching and consulting proprietorship earned less than 10 lacs in the FY 2012.
2) My clients (i.e. Service recievers) deducted TDS when paying us
3) I was told to claim notification 33/2012 in line B1.9 on ST-3
4) But where in the ST-3 do I mention the TDS already cut and deposited by my clients? Is that refundable back to us?
Thank you very much.
TDS has no reference in ST3 return. I dnt understand who has asked ou to do so? Its your income only. yes you can claim notification 33/2012. You have to fill a nil return. Have you charged service tax from the service receivers?
Thank you for responding Parmita! I do appreciate it. ur quick response.
Right from the beginning, my local accounting service suggested I charge Service tax and then file for returns quarterly as required. This is a new proprietorship so my annual income is less than 10 lacs.
So my clients have been taking TDS and depositing it. So for example, if my bill was Rs 1000. I would invoice them Rs 1123.60, including ST - (12.36% of 1000). Then they would take a TDS of 12.36% so I get a payment of Rs1000 approximately.
My clients ask for a PAN or ST number so they can deduct TDS. Do I have any claim to that money? I guess at the moment I'll take the 33/2012 and file a nil return should the gross amount of income less than 10 lacs.
Should I be doing differently since my income in less that 10 lacs annually at the moment?
Thanks for your valuable guidance!
As far as the service tax is concerned, Service tax is leviable when you cross the 10 lacs limit. But as you have started charging the same you cannot withdraw the same during the financial year.
Your client has to deduct TDS on the whole amount he is paying to you at the rates prescribed by Income Tax Act.
Thanks again. I guess the govt just got richer by a few bucks and my client had to shell out more than they needed to. I think I can withdraw for this new financial year in which case I will have to tell my clients NOT to deduct Tax and to pay me the face value of the invoice (w/o tax). I will need to do this until my total billings for the year exceed 10 lacs. Did I undertand this correctly?
thanks Parmita!
I think you are confused between TDS and Service tax. Your client may deduct your TDS. TDS Complaince s on their part . Further Service tax compliance is on your part. You need to charge service tax untill your gross receipts cross 10 lacs.
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