exemption limit

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PVSubrahmanyam (Querist)
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06 May 2008 Is the basic exemption limit of Rs 10.00 lakhs applicable each year? ( like IT)
Or liability to service tax arises as soon as limit of 10.00 lakhs is exceeded in each year ? Suppose an assessee has 5 lakhs,7lakhs,10 lakhs as billed services during last 3 yrs how the service tax provisions would apply

Thanks for your offer to clarify
subrahmanyam

Amit Sharma

Amit Sharma (Expert)
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06 May 2008 Dear sir,

Service tax limit is 10 lakhs - correct.

However, you should register with the service tax commissioniate if there is an assumption that the services rendered by one for a particular year is going to cross 10 lakhs.

As far as i remember , you should do so within 10 days as the amount of services rendered crosses 10 lakhs.

Hopem your doubt is clear now.

Hari Venkata Ramana

Hari Venkata Ramana (Expert)
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07 May 2008 Further to supplement the above, the limit of 10 lakhs will aplly in respect of all services rendered by service provided during a particular financial year. ST liability arised, only in case where aggregate of value of services rendered exceeds Rs. 10 lakhs. Registration requirement starts from Rs. 9 lakhs

PVSubrahmanyam

PVSubrahmanyam (Querist)
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13 May 2008 Is the exemption available for every year or only one year
pvs

Vijay Chitte

Vijay Chitte (Expert)
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14 May 2008 Exemption is available to every year subject to condition that if you fulfilment of Notification 6/2005-ST (As per Noti 8/2008-ST exemption limit is 10 lakhs Rs.).

PVSubrahmanyam

PVSubrahmanyam (Querist)
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28 May 2008 Thanks
pvsubrahmanyam

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