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Service tax 10l limit confusion

Hanky (Manager) (29 Points)

19 June 2016

I have a question about service tax limit.

Is 10L limit only on Indian revenue or it on India + Abroad?

E.g If earning is say overseas total revenue for a year is 1.10 crore from export of services (which is exempt from service tax) and income from Indian services is 8 Lakhs. So total revenue is 1.18 crore.

Do I need to pay service tax on 8L amount?

OR need to wait till turnover from India is more than 10L?

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5 Replies

Ameya (Student) (230 Points)
Replied 19 June 2016

The act has a saying that taxable turnover should exceed Rs.10 lakhs,since export of service is exempt the same shall not be counted to compute aggregate value of turnover...do confirm it from an expert..

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Kuldipsinh Jadeja (Job) (357 Points)
Replied 20 June 2016

Agreed with Ameya. It is an exempted service and hence should not charge Service tax till taxable turnover exceeds Rs.10 lakhs.

CA. PREM NAILWAL (AUDITOR) (39 Points)
Replied 20 June 2016

registration after 9 lacs

IGNORE EXPORT SERVICES

CA shanky pahoja (accountant) (615 Points)
Replied 20 June 2016

service provided outside the country are not considered for service tax purpose. so tax will not be leviable on service provided outside india,

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 21 June 2016

the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.

Meaning of aggregate value:

Explanation given in explanation- point B of notification no. 33/2012,

(B) “aggregate value” means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax leviable thereon under section 66B of the said Finance Act under any other notification.”