Once we deduct Service Tax on services offered and it stands payable in our books even though we are not registered to pay the service tax. Then, are we supposed to pay the service tax once we are registered or shall we treat that liability as our misc. income since we are not liable to pay the service tax at the time of tax deduction?
Please guide.
Shashankk Rakhecha
Mr.Shanshank Please note that as per provisions related to service tax law any service provider whose gross receipts exceeds Rs 9 lakhs during the year for the first time he should register itself under service tax. Further You can charge servicetax only when your gross receipts exceeds Rs 10 lakhs during the year than service tax is to be charged after crossing this limit.
How can you charge servicetax until you are not registered and doesnot have service tax registration because on invoice it is to compulsorily to be mentioned. Further you can collect service tax and assume it as your misc. income it is illegal.
Thanks
Pankaj Mittal
Under Section 73A of the Finance Act, U R just now to deposit the tax collected by U after getting registered
Raksh*t
9810525780
Yes. i agree with Pankaj any person cannot and should not collect the tax unless they comes under the limit which was stated above i.e., 9 lakhs. Therefore you can remmit the into department once u registred with service tax department and then u need to mention the SERVICE TAX REG.NO in invoice while u do the business and collecting the service tax.
Hari prasd.J
CCI
Pro
CAclubindia
