When will i liable to pay service tax
This query is : Resolved
31 January 2014
I have gross receipts rs. 10 lacs in f.y. 13-14, When i will liable to pay service tax this year or next year.
AVTAR SINGH
(Expert)
31 January 2014
Clause (viii) of Notification no 33 /2012 dated 20-6-12 by Service Tax Department provides that basic exemption of Rs 10 lakhs for payment of service tax is available if –
“the aggregate value of taxable services rendered by a provider of taxable services from one or more premises, does not exceed Rs ten lakhs ruppes in the preceding financial year.”
In your case, you will be liable to pay service tax when the value of services exceed Rs10 Lakh. If in FY 13-14 it does not exceed Rs.10 Lakh, then next year you will be liable only when it exceeds 10 Lakh.
In other words, if a person’s taxable services in financial year 2013-14 is Rs 15 lakhs, he will not be able to get benefit of basic exemption of Rs 10 lakhs in financial year 2014-15 even if his aggregate taxable service is Rs 8 lakhs.
“the aggregate value of taxable services rendered by a provider of taxable services from one or more premises, does not exceed Rs ten lakhs ruppes in the preceding financial year.”
In your case, you will be liable to pay service tax when the value of services exceed Rs10 Lakh. If in FY 13-14 it does not exceed Rs.10 Lakh, then next year you will be liable only when it exceeds 10 Lakh.
In other words, if a person’s taxable services in financial year 2013-14 is Rs 15 lakhs, he will not be able to get benefit of basic exemption of Rs 10 lakhs in financial year 2014-15 even if his aggregate taxable service is Rs 8 lakhs.
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