Ahmedabad, Gujarat
Question
Service Tax
Service Tax for LLP, incorporated in Feb 2016
Hi, I incorporated a LLP in Feb 2016. I have billed a client for Rs. 7 lakhs without a service tax component. I understand that I am not supposed to pay any service tax on this amount.
However as my billings go up, my turnover will exceed 10 lakhs. So when that happens, will I have to pay service tax on the entire income? Or only on additional income (above 10 lakhs)?
Also, is there any tax advantage in not filing the return in this financial year?
As per http://www.mca.gov.in/LLP/llp_eFiling_faq_02.html, point No. 23, I dont have to file for return in this financial year.
Thanks,
SG
Service tax is not payable until you achieve a turnover of RS 10 lacs. Once you cross this threshold limit, you need to pay service tax on the amount exceeding RS 10 lacs
