Q.ABC Pvt Ltd company is a service provider company and never paying to service tax due to every year gross receipt is less then the threshold limit of Rs. 10 Lakh. Now ABC P ltd company is liable to pay service tax under reverse charge therefore company got service tax registration.
is whether company is also liable to pay service tax on service provided by the company even gross receipt is less then threshold limit of Rs. 10 Lakh. since the company got ST registration due to reverse charge.
Ans:-Tax paid under Reverse Charge will not create liability on every Output Services…i.e. threshold limit will be available, Hence service tax will not pay on output services.
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