Important Points in SERVICE TAX
- SERVICE TAX should be charged on the invoice which increases the 10 Lakh limit.
- 9 Lakh is the limit for registration anytime (Section 69)
- Apply within 30 days of exceeding 9 Lakh
- Penalty of INR.10,000 or INR.200 per day (Higher) for non registration.
- ST + TDS example: Bill is 90,000 after deducting TDS of 10,000, then ST is on 100,000.
- Credit can be availed within 6 months from the date of invoice/bill.
- Credit prior to the registration can be availed after Registration
- ST can be paid from the credits of Excise/ST/CVD/SAD
- Interest on late payment (Sec.75):
- Upto 6months : 18% 6-12months : 18% (1st six months) and then 24% (For the last six months).
- More than 12months : 18% (1st six months) and then 24% (For the last six months), then 30%