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Service Tax after crossing limit

Jaikiran (Finance Professional) (133 Points)

07 December 2010

Hi,

Can anyone kindly confirm me that whether I should have to pay service tax on the crossed limit only in the current year, if my PY turnover is less than Rs.10 Lakhs or on the entire tranxs amount. i.e., my current year service turnover would be around Rs.15 lakhs, now will it be enough if I pay service tax only on the extra 5 lakhs or should I have to pay on entire 15 lakhs. Plz suggest.

In one forum, i had seen that for transactions that went upto 12lakhs, paying on extra 2 lakhs is enough but if it crosses 12 lakhs then one should pay on the entire transactions amount with out any exemption of 10 Lakhs. Is it true?

And is it true that my service, where I supply manpower from helpers to computer operators to a Govt. organization comes under "Manpower Recruitement & Supply Agency" category.

Thanks in advance.

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8 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 07 December 2010

Originally posted by : Jaikiran

Hi,

Can anyone kindly confirm me that whether I should have to pay service tax on the crossed limit only in the current year, if my PY turnover is less than Rs.10 Lakhs or on the entire tranxs amount. i.e., my current year service turnover would be around Rs.15 lakhs, now will it be enough if I pay service tax only on the extra 5 lakhs or should I have to pay on entire 15 lakhs. Plz suggest.

you have to pay service tax on only amount which is above 10 lacs, provided u have not availed any credit on input services or capital goods. if u avail

In one forum, i had seen that for transactions that went upto 12lakhs, paying on extra 2 lakhs is enough but if it crosses 12 lakhs then one should pay on the entire transactions amount with out any exemption of 10 Lakhs. Is it true?

if the service tax provider enjoys the tax credit on input services or capital goods then he has to pay from zero otherwise he can avail exemption upto 10 lacs.

And is it true that my service, where I supply manpower from helpers to computer operators to a Govt. organization comes under "Manpower Recruitement & Supply Agency" category.

Yes its taxable service.

Thanks in advance.

sandeep gupta (CMA) (34 Points)
Replied 13 December 2010

my client take a air ticket from make my trip.com and sell it to customer. for that he receive commission from make my trip. whether he will charge service tax on bill and if so at what rate.

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 13 December 2010

Dear Sandeep,

under obove situation your client will be treated as a commission agent of Makemy Trip.com covered under Business Auxiliary Services and is liable to pay Service TAx on the gross receipts of commission.

Regards

Jeevesh Mehta

Service Tax Consultant

Ph: 09811617186

Manish Sinha (Dy. Manager) (22 Points)
Replied 14 December 2010

Hi,

You will have to pay Service Tax on Income above 10 lacs for 1st time. From next financial year you have to pay service tax statrting from income of Rs 1/-.

Jaikiran (Finance Professional) (133 Points)
Replied 30 December 2010

i'm trying to register for Service tax online through ACES but in it, in the list of services, there is no service code like, 'Manpower Recruitement or supply agency', only 'Manpower recruitement' code is available.

Are they both same. I basically supply my employees to a Govt. Organisation and charge them monthly.
Do this come under Manpower Recruitement only or 'Business Auxillary Service'. Please clarify and tell me what happens if we pay service tax with a wrong code.

radha chaturbhuj (accountatn ) (21 Points)
Replied 12 January 2011

Is it allowed to take a credit of extra payment of service tax in next Financial year?

Mean one of my clinet made a extra payment of service tax in the month of march 2010 so that extra payment he can use to pay the service tax in the next financial year ?]

help me out....

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 13 January 2011

Dear Radha,

You can not utilize the extra service tax paid extra. You need to file refund claim before the authorities under prescribed form R and show that you have not passed on the excess service tax to any one as credit ( satisfy on unjust enrichment)

If the authorities are satisfied with your submissions then they might allow you to utilize the same amount in the next year.

Regards

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 13 January 2011

Originally posted by : Jaikiran
	i'm trying to register for Service tax online through ACES but in it, in the list of services, there is no service code like, 'Manpower Recruitement or supply agency', only 'Manpower recruitement' code is available. ( both are same) Are they both same. I basically supply my employees to a Govt. Organisation and charge them monthly. ( check your billing system, if its per person then manpower, if its job based then "business auxilary services") Do this come under Manpower Recruitement only or 'Business Auxillary Service'. Please clarify and tell me what happens if we pay service tax with a wrong code.