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Service Tax Exemption Limit


Hi,

My client has service tax turnover of Rs.15 lacs. Please clarify, whether he has to pay service tax on 15 lacs or Rs.5 Lacs (in excess of exemption of 10 lacs).

If he was having service tax turnover for Previous Year of Rs.15 lacs, what will be the liability.

 
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Accountant/Learner


 

You have to pay service tax on 5lacs. First 10 lacs is exempt from service tax.

 
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C.A Final Student


For determining the exemption limit for current year, previous year turnover should not exceed Rs. 10 lakhs. However in your case turnover for previous year exceeds rs. 10 lakh. Hence exemption will not be available to you and entire turnover of Rs. 15 lakh would be taxable. Regards, Pinky Agarwal.

 
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Accountant/Learner


 

But pinki I think Q is based on p.y. so he have to pay only service tax on amount 5 lac. If not please correct me.

 
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Yes Mr. Pankaj is right this way service exemption would be available to such assessee who does not take any exemption in any previous year.

 

Service tax applicable on 5 lakhs only and remaining amount should be exempt 

But from the next f.y. such assessee should have to collect service tax and deposit the same.

 
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chartered accountant


current year he has to pay service tax on 5 lakh. and from next year onward there would not be any exemption available, so for any amount of taxable service he has to pay service tax.

 
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if you have registered in service tax department and last prv. years u have paid ur service tax on your turnover which is above ten laks then current year service tax will be paid on 15 lacs. 

 
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ACCOUNTS MANAGER


If any person is registered under service tax since last two years,,, but  his turnover is not exceeding Rs 10 lacin any year. he is liable to charge S.T.

AND

if he had already charged S.T. on a bill by mistake then he has to charge S.T. on further bill ??????

 
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Mr. Dinesh

Please refer if any notification or press release about your comment..

 
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ACCOUNTS MANAGER


no, not any notification or press is released, as much i know

 
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