Service tax liability

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My query is about liability for paying Service Tax as a Service Provider (Proprietorship Firm, Recruiting Agency). Our gross receipts from services in FY 2012-13 execeeded Rs. 10,00,000/-. We started collecting and deposting ST @ 12.36% (during the FY) that day onwards. After FY 2013-14 total gross receipts form services provided (during the FY) was only Rs. 9,00,000/-. Please advise :

Whether we should continue collecting ST from service receivers. If not, then when are we liable to collect and pay ST ?

 

Replies (1)

Since the gross receipts exceeded 10 lakhs in 2012-13, you are required to pay service tax on total receipts in financial year ( ie on Rs. 9 lakhs ). However for financial year 2014-15 you can claim exemption upto Rs. 10 lakhs.

Refer Service Tax Notification 33/2012.

 

 


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