I have registered a company under service tax on 2nd april 2012.Can I charge tax for my clients?

I have delivered around 2 lakhs work till now for my clients.Should I charge tax (12.36 %) for this?
I heard that to charge tax, minimum company turnover should be 10 lakhs But ,I started my company only 20 days back…How could I know whether mine is 10 lakhs turnover company or not?

3 Replies to “I have registered a company under service tax on 2nd april 2012.Can I charge tax for my clients?”

  1. If you have registered your co for service tax, Please note in application form you would have declared either of following
    1- You are a service provider and charge service tax with starting and will not claim exemption of Rs 10 lacs,
    2- Your tourover had already exceeded Rs 10 lacs and hence you were taking registration. Means above Rs 10 lacs you have charge ST
    So you should check your registration application and concerned declartion and act accodingly.

  2. 10 lakhs turnover for an year not for some 20 days
    you got your service tax registration on 2nd April 2012, that means your financial year will be 2012 to 2013,
    after 3 months if you have any turnover more than 2.5lakhs you suppose to submit it
    and you can charge service tax on bill from now on,
    in fact at the time of registration department asks your 10 months turnover and then only gives your company registration,

  3. Please note that, there is Small Scale Exemption for small service providers i.e.of Rs.10/- lacs.

    You can verywell enjoy the benefit of the SSI exemption.

    However, you do not want to get benefit of that exemption then you can also charge service tax from 1st Ruppee.

    Please note that if you start charging service tax then you will have charge it from 1st April and you cannot withdraw the same during the entire year.

    If you have any other query you can mail me on [email protected].


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