Exemption limit

[hari kasiviswanathan]

A chartered accountant has rendered taxable services for a value of rs. 9 lacs. In the same year he gets a bank audit assignment which would take his taxable service beyond the threshold of 10 lacs. In this case, how will he raise a bill for the bank audit services because a portion of the bill would be within the threshold and balance only would actually be taxable. However, to the bank, you have to intimate whether you are liable for service tax or not and levy service tax if it is applicable.What is the methodology for raising the bill, filing returns and payment of tax as you would have collected service tax on the total bill value and not on the amount exceeding the threshold. Learned forum members views solicited.Thanks

AI Summary

Chartered Accountant Exceeds 10 Lakh Rupee Service Tax Threshold: Billing and Tax Payment Guidance Explained A chartered accountant provided taxable services valued at 9 lakh rupees and received a bank audit assignment that would push his taxable services beyond the 10 lakh rupee exemption threshold. The query seeks guidance on billing, filing returns, and tax payment, as service tax is collected on the total bill, not just the amount exceeding the threshold. The response advises raising the bill for the full amount but calculating service tax only on the amount exceeding the threshold, with a note clarifying the calculation method.