Transport operator

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vandana (Querist)

09 September 2010 One of my client is a transport operator. In P.Y.2007-08 his turnover was below 7 lacs so he was not liable to get registered before Service tax authority. In financial year 2008-09 his turnover is 8.92 lacs. As per notification the service tax thresolhold limit increases from 7 lacs to 9 lacs o.k. It is written that new limit will be applicable from 1-04-2008. so I am confused whether to advise him to go for registration or not because limit has been increased from 2009-10 but its applicability has started w.e.f.1-4-2008.

Please advise.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

09 September 2010 2005-06 -07 exemption upto Rs 4 lakhs provided the pr yr taxable services not exceeded that limit.
2007-08. Limit as wll as eligibility increased to Rs 8 lakhs. Therefore in your case since 2006-07 was 7 eligible. Since limt was 8 on 0,92 tax was payable.
Year 2008-098 limit increased to 10 lakhs for exemtpion and eligibility. In your case not liable upto Rs. 10 lakhs.

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