Hey can any one Help it Out..
1)If my bill amount exceeded 9.5 lakhs,but collection of bill is only 8 lakhs.Whether Registration is necessary?
2)Since Service Tax is collected on the receipt basis,what is the taxable service,whether the bill amount after reaching 10 lakhs or the amount collected out of 10lakhs?
REGISTRATION OF SERVICE TAX BECOMES COMPULSORY WHEN DURING THE PREVIOUS YEAR, VALUE OF TAXABLE SERVICES EXCEEDS RS. 10 LAKHS AND NOT THE VALE OF TAXABLE SERVICES ACTUALLY RECEIVED.
PAYMENT OF SERVICE TAX ON THE RECEIPT BASIS IS ONLY A FACILITY PROVIDED BY THE GOVERNMENT FOR THE PAYMENT JUST LIKE AS CREDIT PERIOD. WHEN THE SERVICE TAX GOING TO INTRODUCE FOR THE FIRST TIME, IT WAS DECIDED TO GIVE RELIEF TO THE SERVICE PROVIDERS BY PROVIDING THE FACILITY OF MAKING THE SERVICE TAX PAYMENT ONLY WHEN THE ACTAUL AMOUNT IS RECEIVED.
REGARDS,
MANOJ
I hope you are correct,but can u please tell me what do you mean by taxable service,whether bill amount or amount collected out of that bill?
value of taxable services means bill amount of such taxable services and not the amount actually collected.
regards,
manoj
CAclubindia
