What amount will be taxable?

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PRAFUL NANDA

23 Points Posted on 20 November 2012

Dear all,

I want to know from when I will require to pay the service tax

The question is like this.

I own teaching institute and have recevied contractual work of 17 lakh.

I will be required to issue three bills to receive this amount.

The amount of one bill will be 566666.66(five lakh sixty six thousand six hundread sixty six rs.)

I will get amount of two bills within 31st march 2013, and third bill will be cleared after 1st april 2013

that means for this financial year the amount of two bills will be 1133332.00(above eleven lakh)

I have already registered my firm for the service tax and this is the first time the annual turn over will cross above 10 lakhs.

now my question is on what amount I will require to pay service tax?

and is service tax excemption limit is given for every year ? or after crossing 10 lakh , on every bill amount I will require to pay service tax.

Replies (2)

Vikas Prajapati

Chartered Accountant

71 Points Posted on 20 November 2012

Hie,

If in the previous financial year (FY 2011-12) aggregate value of taxable services provided was less than 10 lakh but this year (FY 2012-13) aggregate value of taxable services provided is more than 10 lakh then you start paying service tax after crossing the threshold limit Rs 10 lakh.

The Finance Act 2012, has amended the provision relating to small scale exemption recognizing that the aggregate value up to Rs 10 Lakhs will be in terms ofInvoices issued or to be issued for taxable services and not payments received.(Notification no.33/2012-ST dated 20.6.2012). This is w .e .f 1.7.2012.

Therefore

The service tax will be payable on amount exceeding Rs. 10,00,000 for the first year.

in terms of invoices issued/to be issued for taxable services and not payments received.

Read more: https://www.simpletaxindia.net/2012/09/service-tax-exemption-limit-who-can.html#ixzz2CjuDci1V

If in the previous financial year aggregate value of taxable services provided was less than 10 lakh but this year aggregate value of taxable services provided is more than 10 lakh them you start paying service tax after crossing the threshold of Rs 10 lakh.

Read more: https://www.simpletaxindia.net/2012/09/service-tax-exemption-limit-who-can.html#ixzz2CjtUWiUP

CA Goutam Sharma

Chartered Accountant in Practice

397 Points Posted on 20 November 2012

Originally posted by : Vikas Prajapati

Hie,

.

If in the previous financial year (FY 2011-12) aggregate value of taxable services provided was less than 10 lakh but this year (FY 2012-13) aggregate value of taxable services provided is more than 10 lakh then you start paying service tax after crossing the threshold limit Rs 10 lakh.

.

The Finance Act 2012, has amended the provision relating to small scale exemption recognizing that the aggregate value up to Rs 10 Lakhs will be in terms ofInvoices issued or to be issued for taxable services and not payments received.(Notification no.33/2012-ST dated 20.6.2012). This is w .e .f 1.7.2012.

Therefore

The service tax will be payable on amount exceeding Rs. 10,00,000 for the first year.

in terms of invoices issued/to be issued for taxable services and not payments received.

Agree, Subject to the value of bills issued during the financial year.