Should I charge service tax?

Dear Sir/Ma'am,

I am running a Manpower Consultancy firm and my turnover is less than 10 Lacs p.a. Now, I understand that I am not liable to file service tax under 10 Lacs pa revenue. However, can I bill my clients without charging service tax to them? Also what happens, if in the middle of the year,my revenue crosses 10 Lacs ( without forecast)?

Pls help.

Aveek Bose
Asked 2 years ago in Service Tax from New Delhi, Delhi
Yes, you cab bill the client without service tax. As soon as you crosses the total billing to Rs. 9 lacs, you should apply for service tax and start charging.

Ankit Jain
AJSH & Co, Delhi 

Ankit Jain
CA, New Delhi
32 Answers
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If the aggregate value of services does not exceed Rs. 10 Lakhs in a financial year, the service provider can claim benefit of this service tax exemption and he won’t be required to pay any service tax on such services. 

Although Service Tax is required to be paid only when the aggregate value of services provided exceeds Rs. 10 Lakhs in a financial year, the service tax provider is required to apply for Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs. 

In simple words, you are required to apply for Service Tax registration within 30 days from which your turnover crosses Rs 9 Lakhs but service tax liability would arise when you cross turnover of Rs 10 Lakhs.

For any other queries, feel free to contact at:
Shiv Kumar Agarwal
CA, Delhi
205 Answers
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