Service tax

Dattatray,

We cnt just arrive at the service tax payable on looking at your recipts. We have to check your invoices as there was a rate change in the month of june.

Service Tax act/Rules has provided exemption to small scale service provider from service tax up to aggregate value of taxable services provided of 10 lakh in a Financial Year.

There is no need to collect & pay Service Tax till your aggregate value of services does not exceed Rs. 10 lakhs in F.Y.2015-16. Once it exceeds, service tax is payable on the receipts exceeding Rs. 10 lakhs & no need to pay on intial receipts of Rs. 10 lakhs.

Apply for Service Tax  Registration Number within 30 days the value of receipts exceed Rs. 9 lakhs in a financial year.

However, if the value exceeds Rs. 10 lakhs in FY 2015-16, then you will have to collect & pay service tax from Re.1 in the F.Y. 2016-17 even if the aggregate value of services provided does not exceed Rs. 10 lakhs.

Service Tax Applicability on Tour Operator:

Sir,

I want to start a business of transporter and doing plan for taking service tax no. due to banker's required any registration certificate for a/c open in the name of Firm. my query is that if my total receipts wil be Rs. 6-7 lac per annum then i have to pay tax on in this receipts or will be fill return as a nill or exempted.

i am too confuse about that please suggest anyone.

Thanks & Regards

Arpit Aggarwal

As your expected income from services to be provided by you are less than threshold limit of Rs. 10 Lakhs, per annum you don't have to obtain Service Tax registration in the first place. If you have to obtain Service Tax registraion for the reasons mentioned by you, obtain service tax registration and file NIL returns 

regards

GunaRanjan

Thanks a lot sir.

Sir,

Since my consultancy income amount was exceeding 10 lakhs, I did obtain service tax registration and collected service tax and filed return accordingly. But from FY 2016-17, income will be below 10 lakhs.Do I have to continue collecting service tax and file return? Or shall I cancel my registration and do not collect service tax?

Debashis Sengupta

Dear Mr.Chaturvedi,

I am not clear on your reply.Can you please elaborate

Regards

Debashis