About service tax exemption limit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2013 Please let me know that how I take the benefit of exemption limit of Rs.10,00,000/-.I have taken Service Tax Registration number under the Business Support Service. Eg.Aggregate value of taxable receipt in Accounting year 2011-12 is 7 lakh, for 2012-13 is 9 lakh and 2013-14 is 15 lakh (upto October 2013)..

This benefit of exemption limit is taken only once in whole lifetime?

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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08 November 2013 in your case , exemption would not be applicable as turnover exceeds ten lakhs in the year

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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08 November 2013 You are right in the sense that the threshold exemption limit is available only once. In your case you have crossed the threshold limit in 2013-14 and therefore in the current year you will pay service tax on the turnover in excess of Rs.10 lakhs. In the year 2014-15 you will start paying service tax from your first rupee earned i.e from your first invoice.

However assume that in 2015-16 your turnover again goes below Rs.10 lakhs. Then in 2016-17, you can inform the ST authorities and stop collecting ST from your customers. In that case in 2016-17 you can once again avail of the threshold exemption.