Whether a person having turnover below 20 lakh should charge tax in invoice? As the limit for registration is 20 lakhs, whether exemption like service tax is available?
The limit of 20 lakhs is for registration and not for liability to pay tax. Liability to pay tax arises when you are liable to registration and supplying taxable goods or services or both.
Once you are registered and supplying taxable goods or services or both, you have to charge tax in invoice regardless of your turnover.
If your turnover is below 20 lakhs you are exempted from registration but as soon as you take the registration you have to charge tax in invoice.
Sign up to discuss taxation, accounting and finance topics with experts from all over India.Join Discussion