Service Tax clarification

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  1. jnprady

    jnprady New Member

    During the last financial year 2012-13, I was not required to pay any service tax because my gross earning from the consultancy was below nine lakhs. During the current financial year it is getting exceeded.
    Till the invoicing of Rs 2 L for October 2014 which was paid in Novemeber 2014,
    Total earnings from consultancy were totalling to Rs 8.9 L and hence No Service Tax was due till then.
    With the invoicing of Rs 1.45L for Nov 14 paid in Dec 14, Total exceeded Rs 10 L (to 1035000)
    and
    With the invoicing of Rs .9L for Dec 14 paid in Jan 15, Total further exceeded Rs 10 L (to 1125000)
    There was no invoicing for January 2015. Realising the need to pay service tax I have applied for registration of service tax and have been issued ST2 with a number.

    I have not claimed any service tax so far but now with the invoicing for February 2015 and March 2015
    I would be claiming for the service charges to the client to whom I am providing Engineering consultancy.

    Q1 Whether I have to pay service tax for the period from April 2014 to January 2015
    Q2 Whether I have to pay service tax on whole amount of consultancy invoiced from April 2014 or only on amount exceeding Rs 10 Lakh (for the first time)
    Q3 If yes whether any interest or penalty is also to be paid for depositing the STax now during March 2015 including late filing of ST Return for first half yearly return (?)

    I would be obliged for the needed clarifications
    regards

    P K Jain
     
  2. You are a Small service provider , hence you have to pay Service tax as per payment basis.
    As per your information , You are required to pay service tax from H2.

    Further you are required to pay service tax only after exceeding amount Rs. 100000. So You have to collect service tax on 35000 in Dec 2014.
    Yes you have to pay interest on service tax @ 15% p.a from H2 .
    No interest no Late filing fees for H1 as were not liable.
     
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  3. Anand Jain

    Anand Jain Member

    You only have to pay Service Tax for the amount over and above Rs. 10 Lakhs.

    From the next year onwards, you would be required to pay Service Tax on the Total Amount
     
    jnprady likes this.
  4. jnprady

    jnprady New Member

    Thanks a lot for the pains you have taken and your kind advice.
     
  5. jnprady

    jnprady New Member

    Thanks a lot for the pains you have taken and your kind advice.
     
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