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When is service tax applicable?

Jagadishwaran Guruswamy (Managing Director) (67 Points)

03 September 2015

Good Afternoon,

Please could someone kindly advice on the following.

Service Tax needs to be paid even when the income of the service provider is less than Rs.10 Lakhs for a particular finacial year,
Do we need to submit Service Tax returns even though the Service Tax number has not been applied for and the income in a particular financial year is less than Rs.10 Lakhs.

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CA Mukesh Choudhari (xyz) (153 Points)
Replied 03 September 2015

one need to get register if value of taxable service exceeds Rs. 9 lakhs. And once the value of taxable service crosses Rs. 10 lakhs you can claim small service provider exemption and need to pay service tax on sum over and above Rs. 10 lakhs.

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Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 04 September 2015

The person liable to register couldbe as a service provider ( if pr yr taxable services provided less than 10 lakhs then regn not necessary till 9 lakhs this year. Payment of ST after 10 lakhs in this year. This exemption is not applicable for branded services of others being provided.

Also ST is liable on reverse chanrge for certain type of expenses when provided by unorganised sector. If one is liable under this then no 10 lakhs exemption exists. One needs to register and pay.

If not reqd to register than no return need be filed.

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