Service-Tax-Liability

Queries 1311 views 2 replies

RUSHABH K SHAH

PROPRIETOR

34 Points Joined June 2011

My client has render taxable service of Rs.15,34,544/- during financial year 2010-11 and out of which Rs. 268,000/- realised/received in the same year. Please advice when liability to get registration arise and levy of service tax from which date i.e. from the across 10 lakhs taxable service render or taxable service bill raised from 01.04.11 i.e. from next year. 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/- or Rs.12,66,544/- on which my client has not collected service tax.

Should any implication take place if recent amendment in service tax i.e. receipt basis to accrual basis?

Year

Op.bal

Bill raised Service Tax not collected

Payment received

Cl-Bal

Year

Op.Bal

Bill raised

Till15.6.11 Service Tax collected

Payment received

Cl-bal

10-11

NIL

15,34,544

2,68,000

12,66,544

11-12

12,66,544/-

2,50,000/-

12,66,544/-

2,50,000/-

Regards

RUSHABH SHAH

Replies (2)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

your tax liability is on 1266544/- till 30th june ( eligible for 10L exemption) and on 250000/- from 01-07-11

Arun Kumar Singh

GST Advocate

15220 Points Joined January 2009

Any provider of taxable service whose aggregate value of taxable service exceed 10 lacks in a financial year shall make an applicable for registration within 30 days from the date of exceeding the said limit. In financial year 2010-11 service tax was payable on payment receipt basis but now service tax will be applicable under point of taxation rule 2011. click on the below link:

https://www.servicetax.gov.in/st-circulars-home.htm

in financial year 2009-10 if your turnover will be below 10 lacks then you will pay service tax on Rs. 266544/- other wise you will pay Rs. 1266544/-.