About service tax exemption limit

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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)

08 November 2013 in your case , exemption would not be applicable as turnover exceeds ten lakhs in the year

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

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.