Simple Service tax query

ABC Tours & Travels.

what will be the service tax liability in the below case for each year.

F.Y.                           Turnover/Receipts(service)

2007-08              7,00,000/- (1st year)

2008-09              10,50,000/-

2008-10               8,50,000/-

2010-11     (estimated) 4,50,000/- & if in future the turnover remains below 5lac S.T. aplicability.

Replies (4)

ST applicability depends upon previous year turnover. If in p.y. it was more than 10L. than you should start ST from next f.y. i.e from 1ST April.

You have provided only turnover, but ST is levied on RECEIPT Basis only.

Please provide the details of actual receipts.

if I assume the data given as realised in the same year then u have to pay tax for the F.  year 2008-09 on 50,000/- and for 2009-10 on Rs. 8,50,000/- and so on...

2010-11 the pr yr taxable services being below 10 Lakhs, the exemption upto Rs10 lakhs available. After corssing 10 lakhs of receipt liable. In this case maybe preferable to charge the St from 9 lakhs to avoid a situation of being out of pocket.

This is so even thoughin 2009-10 he wouldbe liable from re. 1. That is because pr yr taxable services provided is more than 10 lakhs.

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