Udhins (Chartered Accountant) (113 Points)
20 October 2009Provisions say that for servicetax providers if their total income does not exceed 10lakhs then they are exempted from service tax! Then what happens to the amount collected by service providers from the consumers ! If they do not remit it to govt then does it come into taxability of Income tax?
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 20 October 2009
Yes, I agree. And dont mix up service tax with Income tax. Both are different and no relation with each other. You have to apply for service tax immediately and pay service tax to the Govt.
| Originally posted by :CA.Tarun Maheshwari | ||
| " | Yes, I agree. And dont mix up service tax with Income tax. Both are different and no relation with each other. You have to apply for service tax immediately and pay service tax to the Govt. | " |
Abhishek Agarwal
(Student)
(56 Points)
Replied 13 November 2009
First Year Of providing service
Don't Collect Service Tax till Your Aggregate Value of Service crosses 10,00,000
After that Start Collecting Service Tax becoz
Liability of Service Tax = 10.3 % ( Aggregate Value - 10,00,000) {if entity is entitled for service tax exemption}
Entitlement of Service Tax Exemtion-:
1.) Preceeding Year Aggregate Value of Service Tax <or = 10,00,000 (irrespective of whether service tax paid in preceeding year or not)
First Year ka case to clear hai ab subsequent year's ka samjho
In subsequent Years
if Aggregate Value of Service provided in preceeding year is less than 10,00,000(irrespective of the fact whether service tax paid in preceeding year or not)
you are entitled for exemption limit
So dont collect service tax on Aggregate Value of Service10,00,000
After that start collecting service tax
But practically subsequent years mein aisa hota nai becoz subsequent years mein receipts increase for any organisation
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