What is exemption limit of 10 l
This query is : Resolved
22 December 2012
Clarification on Service Tax Exemption Limit 10 Lakh :
Service tax turnover of Rs.11,70000 lacs. Please clarify, whether he has to pay service tax on 11 lacs or Rs.1 Lacs (in excess of exemption of 10 lacs).
Basically service tax charged by service provider from service receiver and then liable to pay to the Government.
Assumed that Service provider billing (taxable turnover as listed in relevant notification) for his client as under:-
For Rs. 120000 ( in the of Apr 2011)
For Rs 150000 ( in the month of 2011)
For Rs 200000 ( in the month of June 2011)
For Rs 500000 ( in the month of Dec 2011)
For Rs 200000 ( in the month of Jan Feb & March2012)
Say total Amt. of Billing for 2011- 2012 Rs. 11,70,000/-
In my opinion he can avail exemption limit of 10 lakhs for first year and on Rs. 1,70,000/- he is liable to pay tax whether he charged or not.
Agreed or not?
Your Conclusion Pl. :....................... ?
Service tax turnover of Rs.11,70000 lacs. Please clarify, whether he has to pay service tax on 11 lacs or Rs.1 Lacs (in excess of exemption of 10 lacs).
Basically service tax charged by service provider from service receiver and then liable to pay to the Government.
Assumed that Service provider billing (taxable turnover as listed in relevant notification) for his client as under:-
For Rs. 120000 ( in the of Apr 2011)
For Rs 150000 ( in the month of 2011)
For Rs 200000 ( in the month of June 2011)
For Rs 500000 ( in the month of Dec 2011)
For Rs 200000 ( in the month of Jan Feb & March2012)
Say total Amt. of Billing for 2011- 2012 Rs. 11,70,000/-
In my opinion he can avail exemption limit of 10 lakhs for first year and on Rs. 1,70,000/- he is liable to pay tax whether he charged or not.
Agreed or not?
Your Conclusion Pl. :....................... ?
22 December 2012
You are very correct.. Service Tax needs to be charged once your taxable turnover exceeds threshold limit that is 10 Lacs. In your case 170000 is the value of service in which you need charge tax....
23 December 2012
Thanks for your valuable reply
Rajeev
Rajeev
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
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- FORM 26A APPLICABILITY
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
