REGISTRATION

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This query is : Resolved

SIJU VARGHESE (Querist)

10 June 2010 Sir,

A person has started Travel Agency (other than Air/Rail)on 1st April 2010. His receipt is less than Rs.9Lakhs.
Can he voluntarily take Service Tax Registration and claim Basic exemption of Rs.10Lakhs?

When he approach a service tax officer, the Officer said that if he voluntarily registered then he cannot claim the basic exemption. Is it correct?

Please reply

Thanks in Advance

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

10 June 2010 yes.Registration is required only the Turnover exceeds the basic exemption limit

CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)

10 June 2010 Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds Rs.10 lakhs shall make an application for registration within a period of thirty days of exceeding the aggregate value of taxable service of Rs.10 lakhs.
The limit of Rs.10 lakhs is for one year. However this exemption is not available if you have crossed Rs.10 lakhs in the previous year. If you have not crossed Rs.10 lakhs of in the last year then you are eligible to avail the exemption for this year upto Rs.10 lakhs after which you have to collect and pay service tax to the department. If you exceed Rs.10 lakhs this year you will not be eligible to avail the exemption for next year

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