Service tax exemption for transaction below 10 lakh
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 October 2011
A Pvt Ltd. in the first year ( 2008-09) of its formation did a transaction of 14 Lakhs & as such it registered for STax & paid service tax.
Now in the next consecutive 2 years viz. 2009-10 & 2010-11, the transaction of the company is meare 2 lakhs, much much below the exemption limit of STax.
My query is that can the company start excluding STax in the bills, stating that owing to transaction below 10 lakhs, in the last two years the comany is exempted from paying sTax
Now in the next consecutive 2 years viz. 2009-10 & 2010-11, the transaction of the company is meare 2 lakhs, much much below the exemption limit of STax.
My query is that can the company start excluding STax in the bills, stating that owing to transaction below 10 lakhs, in the last two years the comany is exempted from paying sTax
26 October 2011
you are small service provider from year 2010-11 & Exemption of 10 lac available to you for 2010-11 & 2011-12..
CA Deepak S
(Expert)
26 October 2011
Small service providers whose total value of services provided (including exempt and non-taxable services) is less than Rs 10 lakhs in previous year are not required to pay service tax in current financial year till they reach turnover of Rs 10 lakhs.
For availing the exemption the assessee has to file a declaration to the Central Excise Department. An option once exercised cannot be changed for that particular financial year
See Notification No 6/2005-St dated 1.3.2005 as amended by Notification No 4/2007-ST dated 1.3.2007 and Notification No 8/2008-ST dated 1.3.2008.
You can see some FAQ on the same from the following link
https://www.taxmanagementindia.com/wnew/print_article.asp?id=568
For availing the exemption the assessee has to file a declaration to the Central Excise Department. An option once exercised cannot be changed for that particular financial year
See Notification No 6/2005-St dated 1.3.2005 as amended by Notification No 4/2007-ST dated 1.3.2007 and Notification No 8/2008-ST dated 1.3.2008.
You can see some FAQ on the same from the following link
https://www.taxmanagementindia.com/wnew/print_article.asp?id=568
Sundaram Kumar
(Expert)
27 October 2011
Yes I agree what Mr CA Deepak S said. But you want to change your option in the middel of the Financial year you can approach your Range Superintendent and get the permission to change your option
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