DEAR ALL,
I HAVE A SMALL QUERY REGARDING SERVICE TAX LIMIT AND ITS TAX LIABILITY ON AN EXAMPLE:
I AM CLEAR ABOUT ONE FACT THAT AN ASSESSEE WHOSE TOTAL SERVICEABLE RECIEPTS HAVE EXCEED 9.00 LACS WILL REQUIRE ONE TO REGISTER FOR SERVICE PROVIDED
MOREOVER WHEN SUCH RECIEPTS EXCEEDS RS. 10.00LACS IN THAT FINANCIAL YEAR, ONE HAS TO COLLECT AND PAY SERVICE TAX TO GOVT.
EXAMPLE:
IF ABC HAS RECIEVED GROSS RECEIPTS OR PROVIDED SERVICES IN FY 2009-10 OF RS15.00 LACS AND HE\SHE REGISTERS, ONE GETS EXEMPTION ON FIRST RS. 10.00LACS SERVICE PROVIDED AND ON REST RS. 5.00 LACS, HE\SHE WILL BE REQD. TO PAY SERVICE TAX.
NOW THE SAME ASSESSE EARNS JUST RS.5.00LACS IN VERY NEXT YEAR, DO THIS ASSESSEE IS REQUIRED TO COLLECT AND PAY SERVICE TAX ON SUCH SERVICE RECEIVED OR RECEIPTS IN ADVANCE, AS HE HAS NOT CROSSED TAXABLE LIMIT FOR THIS YEAR(I.E. OF 10.00 LACS RS. AGAIN)?
CAclubindia
