Service tax clarification

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Namitha Shah

CA in Practice

24 Points Posted on 11 November 2013

Hi,

My client has commenced business on 10/05/2012.

In first year of business the extent of turnover was not sure so Registration for Service tax was not taken. Luckily he did not cross the threshold in first year of business.

Now at the beginning of second year he was very sure that threshold will cross this year so in July-2013 he has taken registration and started collecting service tax form the bills issued July-2013 onwards. His 10 lac threshold is not yet crossed.

My question is that will he have to pay service tax on the amounts received for services rendered during April-2013 to June-2013.

Thank You

Namitha Shah

Replies (4)

CA Kanagaraj R

CA CS & CWA

89 Points Posted on 16 November 2013

Service tax liability will not be there for Apr'13 to jun'13 as he can avail small service provider exemption for the said period.

And since from the date of registration he is collecting and remitting service tax voluntarily though he has not crossed threshold limit, he is entitled to claim the said exemption upto Jun'13.

CA. Narottam Kumar Rawat

Indirect Tax Consultant

333 Points Posted on 17 November 2013

Mr. Kanagaraj said correct.

Namitha Shah

CA in Practice

24 Points Posted on 17 November 2013

Thanks for the reply.

sagar

accounts executive

22 Points Posted on 11 April 2014

dear sir

i am an account exective in cunstraction company i have a doubt in service tax actully my company nature is constraction we are following the rule is as per notification 26/2012 amandment 75% we are paying the service tax on 25% in this case what are the charges we have to take for input please suggest me

sarangadhara