Service Tax Exemption Limit

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Chandru (Querist)
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15 November 2010 Dear Sir/ Madam,

Suppose, My turnover is 15 Lakhs, what amount I need to Pay the Service Tax for Rs. 15 Lakhs or for Rs. 5 Lakhs only

kindly advice me

regards

Chandrasekaran

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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15 November 2010 UP TO 10 LAKH IS BASIC EXEMPTION LIMIT.

ON NEXT 5 LAKH S.T. WILL BE PAID.
PLEASE NOTED ALSO THAT :-

Interest and Penalties/Late Fees
Nature of default Section Quantum
Interest on amount collected in excess 73B Simple interest @ 13% p.a.
w.e.f. 19th April, 2006.
Interest on delayed payment 75 Simple interest @ 13% p.a.
w.e.f. 10th September, 2004
Penalty for failure to pay service tax 76 Higher of Rs. 200/- or more per day or 2% of service tax p.m.
Late fees for delay in filing return 70(1)
&
Rule 7C • Rs. 500/- for delay up to 15 days
• Rs. 1,000/- for delay beyond 15 days upto 30 days
• Rs. 1,000/- plus Rs. 100/- per day for delay beyond 30 days
• CEO empowered to reduce or waive penalty (late fees) for delay in filing return where gross amount of service tax payable is NIL.
Failure to take service tax registration 77 Up to Rs. 5,000/- or Rs. 200/- for every day during which such failure continues, whichever is higher.
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B R Ramesh

B R Ramesh (Expert)
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15 November 2010 Hi

A service provider whose total value of services is less than Rs. 10 lakh in P Y
are note required to pay the service tax in C Y (current Year).till reach turnover of Rs 10 lakh.

therefore you need to pay the service tax on only 5 lakh.

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