Service Tax from beginning of year or when I cross 10 Lakhs?

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  1. U S Padiyar

    U S Padiyar New Member

    I am a consultant from the current financial year and expected to cross service tax exemption limit by last few months only. Service tax in the previous year is NIL.

    Am I supposed to charge service tax to my client from the beginning or only after exceeding 10 Lacs limit.

    Am I supposed to pay service tax to Govt. from the beginning of the year or only after exceeding 10 Lacs limit.
     
  2. INVESTURU

    INVESTURU Member

    firstly, you have to apply for a service tax registration number with in 30 days of time, when your receipts from taxable services exceeds Rs.9,00,000/-. However, service tax should be charged from the client only when , amount of taxable services exceeds Rs.10,00,000/-.
    you can deposit the service tax towards govt. treasury voluntarily, even your amount of taxable services does not exceeds Rs.10,00,000/-. Because you can claim refund or can claim CENVAT Credit for such excess amount.
    For more query: you can email at:-
    [email protected]
     
  3. U S Padiyar

    U S Padiyar New Member

    Thanks for your reply. Does it mean I can charge service tax to my client from day one expecting my taxable income exceeds Rs. 10 Lacs and pay the amount collected to Govt.?

    Under such a situation suppose my taxable income does not exceed Rs. 10 lacs by the end of the year, can I claim refund from Govt?.

    Doesn't it means that I have claimed service tax from my clients but not paid the same to Govt.
     
  4. INVESTURU

    INVESTURU Member

    you have rightly understood.
     
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