Dear All,
Plz. sugest me from the given case..
> A person whose taxable service turnover exceeds Rs. 10 lack in F.Yr. 2009-10, is he liable to charge service tax from the very 1st bill in F.yr. 2010-11...?
> If Yes... then Plz guide me that if his turnover does not exceeds the basic exemption limit Rs.10 Lacks in F.Yr. 2010-1, then what are the remedies for that person....?
yes he can start charging service tax from the very first bill in FY 2010-2011.
he has to register himself within 30 days from the day turnover exceeds the limit...
he has to charge service tax from the very first bill and he had to get register witthin 30 days of turnover exceeding Rs.9 lakhs.
| Originally posted by : diwakar gautam | ||
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- he is liable to pay tax on excess of 10L in the year 2009-10, - he can opt for exemption of 10 L in 2010-11 without input credit or pay tax from zero with input credit.
- input credit would go zero if u opt for exemption, submit an option letter to R/O for availing exemption before issue of any invoice. |
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For 10-11 he is liable to tax. But for 11-12 he is eligible for basic the exemption.
| Originally posted by : Unnikrishnan Nair N | ||
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For 10-11 he is liable to tax. But for 11-12 he is eligible for basic the exemption. |
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it is prudent to register when turnover goes to 9 lac and it is not mandatoey to charge service tax on registration you can opt exemption in f.y. 2009-10 further if you have charge service tax then you have to deposit it whether your turnover is less than 10 lac or more than 10 lac.
so if you charge service tax in f.y. 2010-11 you have to deposit it otherwise you take exemption of limit
In 2011-12 its upto you if you don't charge and turnover not exceed 10 lac you can again get exemption of limit but in case the turnover exceeds 10 lac in any month of f.y. 11-12 you will become defaulter for not charging service tax on previous months bills. so it is advisable to charge service tax even if you have turnover less than in f.y. 2010-11. As it was always asume that business will grow not decline
CAclubindia
