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The gross receipts of CA firm upto Sept 09 are Rs 9 Lacs. The receipts crossed Rs. 10 lacs in Oct 09. How to calculate the Service Tax liability? Whether we have to pay service tax on fees received fees billed in Sept 09 but received in Oct 09 & onwards.
 

Replies (3)

service tax is payable on all recipts received over 10 lakhs. so no service tax liability upto september month.

but plzzzz.... dont get confused. in practical life.... when gross receipts cross 9 lakhs, we have to apply for service tax number on form ST- 1. after crossing 9 lakhs... we generally start to charge service tax from clients. so, your given situation shall not arise practically.

 

theoratically.... we have to charge service tax on fees billed in september which is after crossing 10 lakhs limits. ( i am making assumption that your accountant is not  lazy enough that he hasnt  tracked the ceiling limit of fees billed)

Once the taxable services receipts [ other than those exemption- when the service is provided pursuant to a notice by the IT/ ST/ CE dept,] reaches Rs. 10 Lakhs, then only ST is payable provided that in the previous year your taxable services provided was less than Rs. 10 lakhs.

is there  need to prepare export services invoice in INR for exemption.  (assume amount will receive in USD.

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