Service tax received without Registration

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  1. Lalitkr

    Lalitkr New Member

    One of my client commenced business recently and received amount of Rs. 100000 and on this Rs 12360 as service tax as first bill in the current financial year which is first year of his business...as my question is that wether he is liable to pay Rs 12360 as service tax to govt. Or he is eligible to take advantage as small scale dealer below 10 lac turnover.. Plz suggest me...
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    It is not mandatory for him to collect Service Tax if the aggregate value of services provided during the year is less than Rs. 10 Lakhs. He can claim benefit of Small Scale Exemption.

    However, if he has collected Service Tax from Client - he would be required to apply for Service Tax Registration and deposit the Service Tax with the Govt.
     
    Arun Kr Dubey likes this.
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