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Service Tax

SHITAL (SERVICE) (47 Points)

18 March 2011

HI, Dealer Service Sales Turonver is below 10 Lac in last year & he had pay service tax to the Govt. He don't deduct Service tax from the party (as per agreement), He bear it by own. He also don’t want to deregister service tax number (May be useful in future). Can he now stop charging (paying service tax to govt), as his t/o is below 10 lac.

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5 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 18 March 2011

If he is paying service tax and his t/o is below 10 lac in previous year first he can take input credit of service tax…

First pay taxes if you have any service tax liability and than surrender your service tax registration….

CA Ketan Kothari (Associate Consultant) (86 Points)
Replied 18 March 2011

Hi Shittal,

If the value of taxable service provided in the previous year does not exceed 10 Lacs then the assesse is know as small service provider. The benefit of this is that service provider is not require to charge service tax on the taxable srvice provided in the following year upto a limit of 10 lacs.(Value of Service)

However the above scheme is optional.

As in your case he dint require to collect the service tax and he haven't done the same so there is no issue.

However he has paid the ST of his own and he can claim the same as refund as it was mistake of fact by him.

further, the above scheme shall have no imapct on the registration under service tax. So he need not worry for the same.

Regards

Ketan

CA Ketan Kothari (Associate Consultant) (86 Points)
Replied 18 March 2011

Originally posted by : Pankaj Arora
	If he is paying service tax and his t/o is below 10 lac in previous year first he can take input credit of service tax… First pay taxes if you have any service tax liability and than surrender your service tax registration….

If he is an SSP he dosen't need to surrender his service tax registration.

SHITAL (SERVICE) (47 Points)
Replied 18 March 2011

Thanks for reply.

He dont want to deregister the service tax no. as t/o can increase. He was paying ser tax to govt earlier, and he dont want to pay further as his t/o is less than 10lac. Do we need to follow any procedure for the same.