New company-

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2012 Hi
my friend has opened a new sole propritorship in april,12.till date his turnover is 15,00,000
i would like to know that is he required to pay service tax for all the recipts or he can avail the benefit of rs.10 lac exemption limit pls help

hirenjjoshi

hirenjjoshi (Expert)
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23 May 2012 Service tax is payable for sole propritor if turnover in previous year excess Rs 10 Lacs, so in this year you donot have to pay service tax just take service tax number & file nil return from April 13 you liable for service tax

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2012 so i dont have to pay any service tax i am likely to charge 80,00,000 during the financial year 12-13.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 May 2012 Only the first 10 lakh receipts are exempt from service tax. Service tax is applicable on the balance receipts.

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2012 sidhartha hiren is of diffrent view.
pls confirm what is correct do i need to pay service tax.
its the first yr of company do i need to pay service tax?
if yes on what amount.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 May 2012 Even if it is the first year, only the first 10 lakhs are exempt from service tax.