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Service tax exemption

Service Tax - Started By: - Bijay Shrestha - Dated:- 16-10-2016 Last Replied Date:- 18-10-2016 - A company incorporated in FY 2014-15 and is providing service in FY 2014-15 for ₹ 9,50,000/-. Here the Company has not collected service tax from customers. Now in FY 2014-15, the Company has to register for Service tax and can claim exemption upto ₹ 10 Lakhs.In FY 2015-16, The Company has provided services for ₹ 15 Lakhs. also not collected any Service Tax. Now the Company can clai .....

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vice tax???Please share your views friends. - Reply By Ganeshan Kalyani - The Reply = In FY 2014-15, the consideration received for service rendered is below the threshold limit . Hence no need to register under service .In FY 2015-16, the company need to register and pay service tax on 5 Lacs. The service tax provision states that the provider of taxable service shall pay service tax on the amount in excess of SSI limit. But it does not specifically mentions that the service tax element to be c .....

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on is required.Secondly, generally if the Customers do not agree to pay ST again separately, then service provider can make back calculation i.e gross-up and pay service tax i.e.₹ 5 lakhs * 14.5/114.5 i.e. ₹ 63,319/- .Also Service Tax is indirect tax and service provider has to collect from consumer ST from customers. So Service Provider generally does not pay from his own pocket. So it is better to make back calculation and pay ST right?? - Reply By Ganeshan Kalyani - The Reply = If .....

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urther if you collect service tax on 5 Lacs then 5 Lacs will be your revenue but if you pay on the basis of inclusive method then your revenue will be reduced by the tax amount. Now you decide - Reply By Bijay Shrestha - The Reply = Exactly. In case of inclusive method, revenue will be reduced if the customers do not pay service tax. And for Registration, In terms of Section 69 of the Finance Act,1994 (Chapter V) read with rule 4 of the Service Tax Rules,1994 - Every person who has provided a ta .....

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