Service tax liability

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Manoj (Querist)

16 April 2012 If the total turnover of service tax provider is Rs.12,00,000/- in 2008-09, Rs. 15,00,000/- in 2009-10 and during 2010-11 if turnover is Rs. 9,00,000. In this case, since Rs. 9,00,000/- is below the exemption limit, then would the service provider be liable to pay tax for 2010-11 or will he be entitled to take the benefit of exemption limit of Rs. 10,00,000/-

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)

17 April 2012 The availability of exemption in 2010-11 will depend on turnover in 2009-10. If it exceeds Rs. 10 lac then you are required to pay service tax even if turnover in 2010-11 is less than Rs. 10 Lac.

In your case turnover in 2009-10 is Rs. 15 Lac. Therefore, you have to pay service tax on Rs. 9 lac for 2010-11

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

17 April 2012 As your track record shows that you are covered in ST since past 2 years and for 2010-11 you must have collected ST accordingly you have to deposit the same to the department and file the return of your actual turnover.

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