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Liabale for service tax

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This query is : Resolved

AAYUSHI KHANDELWAL (Querist)
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17 May 2013 DEAR SIR,

A COMPANY\FIRM NOW SERVICE PROVIDER BUT IT KNOW THAT THEY CROSS LIMIT RS. 10 LAKH.WITHIN TWO OR THREE MONTHS
IN THIS CASE IT IS LIABLE TO PAY SERVICE TAX ON RS. 1 TO 10 LAKH.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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20 May 2013 no, if they will cross the limit for the 1st time, then there is exemption upto Rs 10 lacs meaning there by service tax on;ly payable after billing of 10 lacs, upto 10 lacs no tax.
-notification 33/2012

though if they want to pay the tax from Rs 1 they can..as the above exemption is optional.
another thing is that no above exemption allowed if the service provider is using some other big brand name.

Note: from the next year tax will be paid from rs 1 itself, means 10 lacs limit is only for the 1st time

AAYUSHI KHANDELWAL

AAYUSHI KHANDELWAL (Querist)
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22 May 2013 thank.....u.sir:)

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