Am I required to pay Service Tax if earning less than 5 Lakhs?

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  1. saiju

    saiju New Member

    I want to know about Service Tax.. As service provider, earning below 5 lacks p/a ,is it necessary pay Service Tax ? If I register for the Service Tax and not paying the tax because of low annual earning ,is there any problem comes forward?

    Thank you sir
  2. Yatin Gandhi

    Yatin Gandhi Active Member

    You can have a service tax no. even if you are earning less than 5 lakhs. You can claim exemption and not pay any service tax.

    However, if you collect any service tax from your clients - then you would be required to deposit the same with the Govt.
  3. adesh1587

    adesh1587 New Member

    dear Sir,
    pls clarify this point...
    asssesse is (business auxiliary services- distributor of sim card and recharge coupons, with a well known telecom company)

    1. In case registration under service tax is done in 2010-11 and assesse has paid service tax and filled returns for 2010-11 and 2011-12, in which his gross receipts are more than 10 lacs

    but now from 2012-13 gross turnover is below 10 lacs(let say 7 lac) and the assesse is having receipts for job work, commission & brokerage , then assesse would e-file the return or will skip??

    if to file then it should be ZERO/NIL amount OR value of receipt to be mentioned??

    and if mentioned will he have to pay service tax for the said amount??
  4. @adesh1587,
    As you have mentioned in your query that the assessee is already registered under service Tax and has file his return for the F.Y 2010-11, 2011-12 as the gross receipts exceeded Rs. 10 Lakhs. From F.Y 2012-13 onwards, the assessee has not filed his service tax return considering his gross receipt during the F.Y less than the ceiling limit.
    Please be informed that once the assessee get the registration under Service Tax he is liable to charge service tax from the client and file his return irrespective of his gross receipt limit. The Assessee is required to file his return and pay his tax as per the Act.
    Assessee has to show the monthwise receipt in the return for the relevant financial year.
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