Service Tax for Authorized Money changer
This query is : Resolved
13 November 2009
Dear All
I am a small money changer with an annual sale of Rs.3.00 crores. After the recent amendment, i am charging Rs.25.00 as service charge per purchase and sales transactions. All together my service charge for the last accounting year is Rs.15075/-. Do I cover under service tax treshold limit?
I am a small money changer with an annual sale of Rs.3.00 crores. After the recent amendment, i am charging Rs.25.00 as service charge per purchase and sales transactions. All together my service charge for the last accounting year is Rs.15075/-. Do I cover under service tax treshold limit?
13 November 2009
NO YOU ARE NOT UNDER COVER OF SERVICE TEX YOU ARE UNDER EXEMPTION LIMIT.
24 July 2025
Here’s a clear explanation regarding **Service Tax applicability for Authorized Money Changers (AMCs)** based on your query:
---
### Service Tax Applicability for Authorized Money Changers
1. **Threshold Limit**:
The **service tax threshold limit** (as per rules applicable around 2009) was typically **Rs. 10 lakhs per year** of taxable service turnover for most service providers to be liable for service tax registration and payment.
2. **Service Charge Turnover**:
In your case, the **total service charge collected during the last accounting year is Rs. 15,075 only**, which is well below the threshold limit.
3. **Is Service Tax Applicable?**
Since your **taxable service turnover is less than Rs. 10 lakhs**, you are **exempt from service tax registration and payment** as per the exemption limit.
4. **Amendments**:
Recent amendments (as of 2009) did introduce service tax on authorized money changer services, but the threshold limit still applies.
---
### Summary
| Parameter | Your Situation | Service Tax Status |
| ---------------------------- | ------------------------ | ---------------------------- |
| Annual Service Charge Income | Rs. 15,075 | Below threshold |
| Threshold Limit | Rs. 10 lakhs (1,000,000) | Not liable for service tax |
| Service Tax Liability | No service tax payable | Exempt under threshold limit |
---
### Final Note
* You **do not have to register or pay service tax** on your authorized money changer service charges if your taxable turnover remains below Rs. 10 lakhs annually.
* If your service charge exceeds Rs. 10 lakhs in any subsequent year, you will need to register and pay service tax accordingly.
---
If you want, I can help draft a formal note or provide further guidance on maintaining records or voluntary registration if you anticipate growth. Want me to?
---
### Service Tax Applicability for Authorized Money Changers
1. **Threshold Limit**:
The **service tax threshold limit** (as per rules applicable around 2009) was typically **Rs. 10 lakhs per year** of taxable service turnover for most service providers to be liable for service tax registration and payment.
2. **Service Charge Turnover**:
In your case, the **total service charge collected during the last accounting year is Rs. 15,075 only**, which is well below the threshold limit.
3. **Is Service Tax Applicable?**
Since your **taxable service turnover is less than Rs. 10 lakhs**, you are **exempt from service tax registration and payment** as per the exemption limit.
4. **Amendments**:
Recent amendments (as of 2009) did introduce service tax on authorized money changer services, but the threshold limit still applies.
---
### Summary
| Parameter | Your Situation | Service Tax Status |
| ---------------------------- | ------------------------ | ---------------------------- |
| Annual Service Charge Income | Rs. 15,075 | Below threshold |
| Threshold Limit | Rs. 10 lakhs (1,000,000) | Not liable for service tax |
| Service Tax Liability | No service tax payable | Exempt under threshold limit |
---
### Final Note
* You **do not have to register or pay service tax** on your authorized money changer service charges if your taxable turnover remains below Rs. 10 lakhs annually.
* If your service charge exceeds Rs. 10 lakhs in any subsequent year, you will need to register and pay service tax accordingly.
---
If you want, I can help draft a formal note or provide further guidance on maintaining records or voluntary registration if you anticipate growth. Want me to?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Unanswered Queries
- ITR-3 ignores Section 211 (1) (b) for Professionals u/s 44ADA
- ITC Re-claimable Ledger
- F & O Loss Audit Requirement
- Make-up ITC- Eligibility
- ERROR IN ITR3
- Overtime income in salaried person case
- New tax regime and old tax regime.
- Error while filing ITR3 AY2025-26
- RCM invoice related QRMP
- Regarding GST applicability on RWA
- GST registration /aadion a new place of business in the same state and city
- Political donation deduction removed in revised return
- CSR Applicability FY 2425
- Late fee CMP-08 FY 2021-22
- Mismatch in gstr-1 and eway bill invoice no
- Clarification Regarding Tax Deduction at Source on Receipt Against Issuance of Privilege Voucher
- GST TDS on metal scrap
- ITC Inter head difference
- 80CCD(2) of IT ACT
- Guidance for proper GST accounting (eway bill with correct valuation) for cut-to-pack job work given
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
