Service tax

I am a mgmt. consultant since last 10 years . Til 15-16 my turnover was always within service tax exemption limit for small service provider.

ie below 10 lac for 15-16 .  However in 16-17 it is likely to cross 10 lac in Jan.17 .  Every where I read about service tax registration after 9 lacs 

and payment on amount of billing above 10 lacs is compulsory .

However a CA told me that there is a provision in service tax that first time if the 10 lac limit is crossed in several years of business I can wait for 1 more year for registration / payment .

Because in next 2-3 months / GST the limit is expected to rise from 10 lacs to 20 lacs . Then I will not be able to avoid service tax for next year also from bill 1 if I enter in it now. Most of the bills are inclusive of service tax and it is not collected seperately and as such will go from my pocket .

Please advice .  

 

Replies (2)

........told me that there is a provision in service tax that first time if the 10 lac limit is crossed in several years of business I can wait for 1 more year for registration / payment "

Under which section? Any notification in this regard?

You are liable to register with ST department, and pay your regular taxes above 10 lakhs. From next year you will continue to pay ST from first rupee of service charged.(till GST implemented)

You may not migrate to GST as not expected to cross 20 lakhs.

 

Thanks a lot .

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