Service tax exemption and carry forward of input

Others 1726 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.

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details