Invoicing if limit exceed notification 08/2008

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Rahul Chauhan

Manager- Accounts

56 Points Posted on 23 April 2011

Service provider exceed turnover limit Rs.10 lacs in the year of starting of business.

Upto January'11 turnover = say, Rs.5 lacs (not anticipated that it will exceed Rs. 9 lacs during the year, so not get registration)

In January' singal billing to single party = say, Rs. 6 lacs.

ie. now cannot avail examption 08/2008 as turnover exceed Rs. 10 lacs.

How should , if servicer already provided without reg. in jan, he will raise invoice to that party, provided that he get registered upto march 11 ie. after provided services -

1) Invoice with service tax or without service Tax?

2) is it possible to raise two invoice Rs. 5 lacs ,without ST + Rs. 1 lacs with ST??

3) If Orchestra services provided at Employees colony of party (Manufacturing Concern), for New Year Fest, if eligible for Cenvat Credit for the Same???

Replies (2)

Pankaj Arora

Learner

3431 Points Posted on 23 April 2011

After crossing 10 lac limit service provider should register within in 30 days according to the rules under service tax.

But you can register now in ST-1 form service tax act and you will get service tax registration certificate within 15 days… and start charging service tax when you will get st-2 certificate without registration no. mention you can not charge service tax…

Because you are registering late under service tax so service tax on crossed amount of 10lac you have to pay from own pocket or you can assume service recipient paid you payment including service tax and than you can find out service tax by making back calculation………..

U S Sharma

glidor@gmail.com

21670 Points Posted on 23 April 2011

Originally posted by : Rahul Chauhan

Service provider exceed turnover limit Rs.10 lacs in the year of starting of business.

Upto January'11 turnover = say, Rs.5 lacs (not anticipated that it will exceed Rs. 9 lacs during the year, so not get registration)

In January' singal billing to single party = say, Rs. 6 lacs.

ie. now cannot avail examption 08/2008 as turnover exceed Rs. 10 lacs.

How should , if servicer already provided without reg. in jan, he will raise invoice to that party, provided that he get registered upto march 11 ie. after provided services -

1) Invoice with service tax or without service Tax?
- as unregistered u cant issue invoice by adding service tax.

2) is it possible to raise two invoice Rs. 5 lacs ,without ST + Rs. 1 lacs with ST??

- break up of invoice will not resolve the prob.

3) If Orchestra services provided at Employees colony of party (Manufacturing Concern), for New Year Fest, if eligible for Cenvat Credit for the Same???

- orchestra party is not input service, input credit not available.

to save the situation u can issue a credit note ( 2 lacs) in march to overcome the situation, and raise the invoice again in april of 2 lacs, after getting registered with service tax.