Do I need to collect service tax, even before the firm reaches Rs. 9lakhs

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  1. vamsi ch

    vamsi ch New Member


    We've recently started a partnership firm and we provide video solutions for companies.
    We are thinking of getting registered for service tax. The firm has not reached the Rs. 10 lakh mark to come under service tax.

    We have recently submitted a quotation for our first project after registering the firm and opening the current account, quote value is under Rs. 5lakhs and we have included service tax in the quotation.

    1. Do we actually have to collect the service tax as of now and later pay the same amount after reaching Rs. 10lakhs?
    2. Or Should we start collecting ST only for the projects after the firm crosses Rs.10lakhs?

  2. ZED

    ZED Well-Known Member

    You can claim SSP exemption vide notification No. 33/2012. If you are claiming this exemption (exemption from ST on 1st 10 Lakhs) then you should not charge any ST on such service (which has been exempted).

    If you will be claiming the benefit of exemption then yes, you should collect only if you crossed 10 Lakhs.
  3. vamsi ch

    vamsi ch New Member

    Hey ZED!
    Thanks for the reply.

    So, I understand that we should only start charging ST for those projects which we take once the firm reaches/crosses the Rs.10lakh mark.

  4. ZED

    ZED Well-Known Member

    Yes Vamsi Ji.
    vamsi ch likes this.
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