Service tax under .05 lac (below threshold limit rs 10 lac)

Queries 5904 views 2 replies

Guest

Dear Sir/Ma'am

I am an Architect by profession and got service tax registration number recently in January 2012, as it was mandatory for opening a current account. Now I have a project with INR 50 k paid by client without any mentioning of tax and this is the total turnover for my firm (proprietorship) for the financial year 2011-12. I am very confused about paying the service tax and filing the return on ST-3.

Please guide me through this, I have four specific queries.

What is the amount of service tax I need to pay If any and Is it to be done before March 31, 2012.
If this is NIL amount (considering total is less than 10 Lac), do I have to file ST-3 before 25^th April 2012.
Is there specific procedure to follow or form to fill for geting this exemption (waiver) of service tax?
Do I need to ask my clients for paying service tax after crossing the limit of my turnover by 10 Lac or it starts with first billing of any amount (Say 100 Rs.).

Waiting for prompt reply.

Thanks and Regards

Munendra

Replies (2)

CA.Ganesh

Practicing Chartered Accountant

308 Points Joined December 2008

1) Since your turnover is less than 10 lakh, you are not liable to pay service tax for the financial year 2011-2012. In financial year 2012-2013, you may claim exemption upto 10 lakhs. 2) You have to file ST3 for half year ending March 2012 3) For claiming exemption available to small service providers, mention the notification no 8/2008 4) From the year 2012-13 , you charge service tax after bill amount 10 lakh

Guest

Hi,

Thanks a lot for your prompt reply. As I was trying to fill the ST-3 form from ACES website, I didn't find this particular notification 08/2008 for small scale indutries exemptions. I can see all previuos notifications like principal one 6/2005 and amendment 04/2007 but not this the latest one 08/2008. What could be the reason for this. Can I select 04/2007.