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Service tax on services provided to local companies

Others 516 views 1 replies

Pushpa

Accountant

43 Points Joined October 2009

Dear All, We are manufacturing and supplying some machinery to our customers. also we provide some services like installation , service of Machineries testing ans we charge service tax on the services provided @ 12.36%. Do we have to pay that service tax to the department. What is the turnover exemption for paymet of service tax. Pleaes clarify.

thanks & Regards

Pushpa

Replies (1)

Prabhat Kumar

Advocate & Consultant

1912 Points Joined July 2009

The basic thing in taxation is-if you collect the Tax you must pay the same to the govt.Now come to your queston if your assessble value of the goods includes cost of installation then no separate S.T is chargable.If the same is not included then you can charge after crossing the threshold axemption of Rs 10 lacs.