Service-Tax-Liability

No registration is required your client can recitfy the bills that have been given for extra amount.....:-) And if the receipt of your client exceed 9lakh then registration is compulsory And if the receipt of your client exceeds 10lakh in a financial year then 10.3 service tax is charged on every receipt after 10lakh and if receipt crossed once 10lakh then from anthor financial year all receipts will be chargable to tax.....

Thank you Nikhil Sir,

If balance amount of Rs.12,66,544/- received in 1st quarter than my client has to pay service tax on Rs.2,66,544/-, should we have to consider recent amendment in service tax i.e. receipt basis to accrual basis.

Regards

RUSHABH SHAH

  

Thank you Nikhil Sir,

If balance amount of Rs.12,66,544/- received in 1st quarter of 2011-12, than my client has to pay service tax on Rs.2,66,544/-, should we have to consider recent amendment in service tax i.e. receipt basis to accrual basis?

Regards

RUSHABH SHAH

  

As Known to us,

Under section 66 of the finance act 94( service tax rules`94)

When a service provider exceeds the limit of  9 LAKHS in a year providing TAXABLE services, he thus becomes liable to get registereed under the service tax.

In the first year if after the registration the service provided exceeds the 10 lakhs mark ( i am not talking about reciepts yet) the service provider becomes liable to pay service tax on the amount recieved above 10 lakhs. 

as per notification 6 dt 2005, exemption has been given to small service provider , that is ... if you are a registered provider but your services doesn`t exceed 10lakhs P.A you are NOT called to pay service TAX.

 

Service tax is calculated on the Gross reciepts, i.e on cash basis ( inclusive of TDS).

Servicetax is a destination based tax.

if services are rendered within the BONDS of indian territory. Only then it will be taxable.

Lot to say on it. More queries to be answered from your end to understand the issue better.

 Though if the above details help .

Thanx for asking

Cheers!

Rishabh,

The Process of GST is still in pipeline.

The I.C.A.I has postponed the base of shift of accounting from csh to accrual Basis for a period of 3 months

 it will be known only after GST comes into effect.

Hitherto we follow cash accounting.!

cheers!