It is clear that 10 lac is limit of service tax in first year but i am confuse regarding exemption limit of next year. May i get benefit of exemption limit of 10 lac in 2012-2013. please reply me as soon as possible
If taxable services do not cross the limit of 10 lakhs in the last year then in the current year, you will not be liable for service tax till your taxable services do not cross the limit of 10 lakhs. once it crosses the limit, you will be liable for service tax on the amount exceeding 10 lakhs.
When an assessee trunover increase the exemption limit 10 lac than assessee is liable to pay service tax on the above 10 lac amount in the first year. but in the next year he required to pay service tax from the first bill of service provide. because after first year assessee not get the benefit of basic exemption limit 10lac. so assessee required to pay on full trunover service tax.