Service tax limit

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Guest

Guest (Querist)

19 June 2012 serice tax exemption query :
F.Y. 05-06 -TURNOVER Rs.5 Lacs
F.Y. 06-07 - TURNOVER Rs.9.5 Lacs (In the F.Y.06-07 we have to apply for Registration)
F.Y.07-08 - TURNOVER Rs.10.5 Lacs (means we have to charges service tax on 0.5 Lacs only for F.Y.07-08)
F.Y. 08-09 TURNOVER Rs.6 Lacs we have to charge service tax on entire Amount of Rs.6 Lacs .
BUT IN F.Y.09-10 turnover is 9 Lacs then service tax to be charges or not????????????????????????

because i have heard that once limit of Rs.10 Lacs is crossed then we have to charge service tax LIFETIME.

Guest

Guest (Expert)

19 June 2012 dear Sanjay,
it is not correct that once limit of Rs. 10 lacs is crossed then we have to charge service tax lifetime. we shall always see the turnover of preceding financial year. In your case if turnover of 08-09 is not more than Rs. 10 Lacs then service tax is not to be charged in 09-10.

Guest

Guest (Querist)

19 June 2012 thank you very much............

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