Regarding Threshold Limit

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Vishal Doshi (Querist)
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09 February 2010 As per Service Tax Law there is exemption threshold limit is Rs 8 lacs, suppose in the FY 2008-09 the turnover of taxable services is below Rs 8 lacs and there is no Service Tax registration. Now in the FY 2009-10 the turn over of taxable services exceed Rs 8 lacs from 12.01.2010 then we have to charge service tax in the bill from 12.01.2010 & pay to the Govt or we have to pay service tax on all the bills from 01.04.2009 to 11.01.2010 ? We have not charge any service tax in the earlier bills as the limit were not exceed till 11.01.2010.

Further should we charge service tax from 1st bill in the next FY 2010-11 ?

CA Shishir

CA Shishir (Expert)
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09 February 2010 The threshold limit now is Rs. 9 Lakh. After that you have to register under service tax. It will be applicable prospectively and you need not pay service tax for transactions before registration. Once registered, you have to continue billing service tax even though a new financial year begis.

Vishal Doshi

Vishal Doshi (Querist)
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10 February 2010 Thanks a lot

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