Service Tax

Dear Nirmal,

If at present ur annual receipts are below Rs. 10 lacs then nothing is required in this Financial Year..

Now next year u said that u belive that turnover would cross RS. 10 Lacs, Service tax shall be payable onlyin respect of turnovern in excess of Rs. 10 Lacs.. (i:Say ur turnover is Rs. 12 Lacs , then Service tax is payable only on Rs. 2 Lacs)

From year next to the above, even if ur annual turnover is less then Rs. 10 Lacs u have to pay service tax on the entire receipts..(i:e If ur receipts are Rs. 5Lacs or Rs. 15 Lacs, u have to pay service tax on Rs. 5 Lacs/Rs15 Lacs)

If u were not require to collect service tax & u have collected it then u have to deposit that amount with the govt. otherwise interest & penalities will apply........

Hi,

what Amir said is correct...

But the moment receipts exceed Rs 9 Lacs, you need to obtain the registration although levy & payment will start after Rs. 10 Lacs