When is service tax applicable?

Queries 410 views 2 replies

Jagadishwaran Guruswamy

Managing Director

67 Points Joined July 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.

Replies (2)

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.

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

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.