The threshold limit for charging service tax is Rs.10 lacs turnover per annum.
In the following case, pl answer how to charge the serv tax. My client has done a service turnover of Rs.9 lacs till date. Now he has got an offer and started doing the same which is about the value of Rs.2 lacs. (of course, the servcie will end within the financial year). Now, my question is whether he has to charge serv tax in his bill for the amount to the extent it crosses the turnover of Rs.10 lacs ( i.e. Rs. 12360 for Rs.1 lac) or for Rs.2 lacs.
If the answer is for Rs.2 lacs, then whether he has to remit the serv tax for the services also already done (i.e for Rs.9 lacs). Need clarification please.
CAclubindia
