Hi Everyone,
The gross value of the services rendered in the financial year exceeded Rs. 10lacs.(being the first year of the entity)
I would like to know whether the service tax liability will be on the total value of the services rendered or amount exceeding Rs.10lacs.
I would like to retierate that thos was the first year of the entity.
You should not consider value of service render. You should consider receipt basis for service tax liability. I assume that 10 Lacs you received from customers against service render than service tax only will applicable on amount exceeding 10Lac.
Being the first year of entity, it will be considered as a Small Service Provider(SSP's)
As Per E/N 6/2005, First receipts of Rs. 10 Lakhs(and not the value of services rendered) shall be exempt from whole of service tax. Over and above will be charged to service tax.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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