Service tax exemption and carry forward of input

1744 views 6 replies

Dear All,

Have few issues regarding the service tax, kindly discuss if possible:

1. Whether the exemption of Rs. 10 Lacs will be there even if our client has voluntarily registered for service tax without exceeding the threshhold limit of Rs. 10 Lacs?

2. The client did not charge the servie tax on the services rendered as the limit of Rs. 10 Lacs did not exceed. Can he claim the input of service tax for the said perod even if the threshhold limit of Rs. 10 Lacs has not exceeded?

3. If answer to point 2 is yes, then whether we can file a return carrying forward only the input of service tax which can be claimed subsequently?

Replies (6)

Service tax is applicable only if an assessee has exceeded his threshold limit ( at present 10,00,000/-).

 

In the present case

(i) Exemption is availble upto 10,00,000/- only and even if he voluntarily registers himself;

(ii) Unless there is an output tax ( Payable), an assessee cannot claim any input and same rules of VAT are applicable in most of the cases.

(iii) N.A

Even though the assessee has taken voluntary registration, the exemption of 10 Lakhs would still apply.

And no cenvat credit shall be taken as there is no output tax. 

Dear Sirs,

Thanks for the prompt reply. Would appreciate if you could mention the relevant Setion/notification/circular realted to the said issue.

Regards,

Abhishek

 

i agree with mr.prateek agarwal.

I agree with the above comments.  Simple logic is there is no output tax - not possible to claim input tax credit.

Abhishek - Why dont u refer the service tax basics material...??

Actually this is very basic question.

 


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