Service tax applicability

This query is : Resolved

chetan (Querist)
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01 October 2014 Dear sir, one of my client is labour contractor and his receipt is more than 10 lacs is service tax applicable??

CA Syed Raza Abbas Rizvi

CA Syed Raza Abbas Rizvi (Expert)
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01 October 2014 Yes, service tax will be applicable in this case, further keep in mind about reverse mechanism

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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01 October 2014 Abbas is correct. However I would like to add on certain things.

As per notification No 33/2012-ST dated 20-6-2012 the taxable services of aggregate value not exceeding ten lakh rupees in any FY has been exempted from the whole of the service tax.

Thus prima facie ST would be applicable in case the receipts comprises of only taxable services. Further Reverse Charge is applicable irrespective of the turnover and there is no thershold limit.