Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Query on Service tax

647 views

Save Share

Join Us Follow Us Add as Source

Manikanth

Chartered Accountant

266 Points Posted on 07 February 2013

A is an Individual he is doing some service oriented bussiness. His

1st year turnover was 8L

2nd year was 12L

So he is liable to pay Service tax from the 3rd year onwards bcz his previous year's(2nd year) turnover exceeds threshold limit of 10L.

Q1 wheather he is liable to pay service tax on the 2L (12-10) ?? He wasn't charged any service tax on his invoice which were issued to his customers as he is not registered for ST.

Q2 when does he Registered?? during the 2nd year itsself or at the beginning of the 3rd year?

Q3. Is there any Sec for levying penalty for unregistered but he charged service tax in his Invoice from begining of the 3rd year ???

Please Guide me frnds.....

Replies (1)

Devendra

Chartered Accountant

3769 Points Posted on 07 February 2013

1) Service Tax shall be levied on the Rs. 2 Lacs andnot on the whole Rs. 12 Lacs as the turnover of the preceding year was below the threshold limit.

2) The assesse should register with the Service Tax Department as soon as his turnover touches Rs. 9 Lacs.

3) If you refer the Finace Act, 1994, penalty shall be levied on non-registration with Service Tax Dept., non payment of Service Tax and non-filing of Service Tax Returns

Regards,

Devendra Kulkarni