Service Tax Registration-Is it compulsory to charge service tax even if turnover less than 10 Lakhs - Professionals - GST - TIK Share
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Service Tax Registration-Is it compulsory to charge service tax even if turnover less than 10 Lakhs


Ram Sinha

2014-08-09

Hi,

Due to some registration requirements, if someone register for Service Tax. For example cab drivers having contract with MNC companies or other consultants who take service tax registeration due to documentation purpose to pitch their services. Do they have to start collecting service tax from clients and file half yearly return even if their turnover or receipt is less than 10 lakhs in a year?

As per me Service Tax registration can be taken even if the turnover is less than 9 lakhs, but whether if registration is taken do we have to charge service tax on all bills from the day of obtaining registration?

If someone has receipts less than 10 lakhs and charge on single bill, whether he have to charge on all other bills that he issue after that?

CA Pulkit Sharma

2014-08-09

Service tax registartion is compulsory if your recipts in a year cross 9 lakhs and you need to charge service tax once receipts cross 10 Lakhs.

However you can charge service tax even if receipts are less than 10 Lakhs. But if you charge on a single bill then you have to charge service tax on all subsequent bills.

Even if you register under service tax but your receipts are not more than 10 lakhs, you need not to charge any service tax upto 10 lakhs limit.

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