Service Tax Query Modified

Without STC no., u cant charge service tax from your students..

Yes it will illegal service tax depart charge penalty or interest for non registration or service tax with interest on crossing the turnover of 10 Lac.

Apply in form ST-1 and you will get ST-2 in next 30 days… 

dear sir,

it is STC No. not cst no.

You can register yourself to service tax through ACES website..

We have made the fees including the 10.3% tax. I don't mind keeping the extra 10.3% with me till my income crosses 10 Lacs or till I register. Does that work ? Or what else choice do I have ?

Thanks to everyone who responded

In real situation we should apply for Service tax no. after crossing 9Lac and start charging service tax Rs. 1 after crossing 10 Lac limit.

Pinki I did not tell about cst ….

But Pankaj, when I cross 10 lacs and have to charge service tax, then do I need to pay service tax on all the 10 lac I have earned too ? How will I get the money to pay the service tax that time if i don't charge and keep that service tax money separately ?

First 10 lac is exempt from service tax and you have to charge service tax from 10,00001.00 or you can take input credit of service which you used in trade for providing output service and than output service tax minus input service tax = net tax payable..

No, u hav to pay service tax on amount received after crossing10 lac (i.e basic exemption limit.)

You hav to pay it your own if u dont collect service tax from your students by back calculating your income..

Thanks.

I did not know of this.My course fee was 90,000 so what I did was, I brought down my fee to 82,000 and added 10.3% tax,instead of increasing the fee.

So now,what do I tell my students ? Any help will be appreciated.Some students have already paid the registration fee. And I dont want to reduce the amount from 90,000

You can recover money on account of service tax from your students..

If they agree to pay the same..

They are ready to pay 90,000 that includes the tax that I have quoted. So I should just not make any changes and keep the money with me ? I will apply for service tax no. when I reach 9 lacs.

If you are a CA, i don't mind hiring you or anyone else here for consulting :)

Ok thanks buddy..