Service tax liability

Queries 543 views 3 replies

CA Sanjay Baheti

PROPRIETOR

1160 Points Joined January 2010

one of my client being an Individual having proprietorship Concern registered with Service Tax Department under Erection,Commissioning & Installation services in Aug,2010. till Date he has not filed ST return on half yearly basis for the Year 2010-11 & 2011-12.

His Total Turnover from the above services for the above period are as under:-

i) From Oct,2010 to March,2011 Rs.2670461/-

ii) From April,2011 to Sept,2011 Rs.1639657/-

iii) From Oct,2011 to March,2012 Rs.1422977/-

Now query is how to compute the service tax liability along with Interest & Penalty as per Service tax Law for each Half year.

Whether we have to compute after considering Rs.1000000/- as Exemption Limit of Turnover so far Small Service Providers are considered.

Please reply with computation of ST Liability along with Interest & maximum Penalty as per law.

Please reply soonest.

Replies (3)

RENGARAJ R.K

ADVOCATE

7557 Points Joined October 2010

Mr CA Sanjay Baheti,

It seems you have taken service Tax RC during August 2010. Have you started collecting service tax for the first ten lacs for the period oct 10 to ..........?

Please reply to provide the answers one by one.

rengaraj r.k

CA Sanjay Baheti

PROPRIETOR

1160 Points Joined January 2010

Mr.RENGARAJ,

Not Collected seperately through invoices till date.

Please reply soonest.

Regards.

CA SANJAY BAHETI

CA Akshay Yetiwar

254 Points Joined December 2011

Mr.Baheti ji,

If you had not charged service tax in your invoice,,,

then claim exemption of Rs. 10 lacs in the first year.. and pay service tax on balance amount.

The amount which is received from customers can be treated as inclusive of service tax and then the service tax can be calculated by doing back calculation.

You can formulate it as Service tax = Total turnover / 112.36*12.36

And as the client is an individual service provider.., his liability to pay service tax is quarterly.

Use the percentage of service tax as applicable in the respective periods.