Service tax

Disha ,

            A Person Is Liable To Fill Service Tax Return Only When He Is Liable To Pay Service Tax U/s 69 (2).Till The Value Of Taxable Services Don't Exceed Rs. 1000000 Exemption Is Applicable.

            At The Point at Which Value Of Taxable Services Crossed The Limit Of 1000000 The Liability To Pay Service Tax Will Arise.

             For Example , Mr. A Who  Registered Himself U/s 69 (1) last Year (2009-10) When Total Value Of Bills Raised By Him Was 905000. He Dont Need To Pay Service Tax As Value Of Taxable Services Dont Exceed 1000000 In 2009-10.

During 2010-11 He Raised Total Bills For Rs. 975000, This Year Again He Didnt Cross Limit Of 1000000 ,Hence No Need To Pay Service Tax.

       Next Year , 2011-12 He Raised Following Biils :-

                  Bill No. 115 = Rs, 750000

                  Bill No.  116 = Rs. 251000

       [ As Soon As, He Raised Bill No. 116 Turnover Becomes 1001000 , Means He Crossed Limit Of 1000000 Rs. , Hence He Pay Service Tax On Rs, 1000 (1001000 -1000000 ) ]

                  Bill No. 117 = Rs 350000 ( Fully Taxable) And Also File Return In 2011-12..

......From Next Year 2012-13 Service Tax Will Be applicable From Day One.