Sir,

I am working as a consultant delivering project management services. My income is as follows:
AY 2009-10: 9.5 Lakhs
AY 2008-09: 10.2 Lakhs
AY 2007-08: 9 Lakhs

Expected revenue for 2010 – 2011: 16 Lakhs

I have paid service tax with penalty for the AY 2009-2010 (i.e. on the 9.5 Lakhs) since I crossed 10 Lakhs mark in AY 2008-09.

Sir, I will be thankful if you could clarify the following:

i) Will I be required to pay service tax on the current year’s income of Rs. 16 Lakhs in AY 2010 – 2011 (especially since I did not cross the 10L mark in the previous year)

ii) Is it necessary for me to maintain books of accounts and get my accounts audited by a CA

Ram. SM.

 service tax is exempt upto 8 lacks in the last 12 months period and not the previous years or if our estimated turnover on newly started business is more than 8 lacks we have to get retistrations by applying in form no.ST-1

_____________________

Sir,

I want to know what is the exemption limit of Service Tax for 2003 for general insurance agent

                                        Turnover (rs.)

                                           situation 1                   situation 2                    situation 3

f.y.08-09                                    5lacs                    6lacs                               11lacs

 f.y.09-10                                   8lacs                     11lacs                             6lacs

Situation 1 : previous yr turnover and current yr turnover are less than exemption limit rs.10, 00,000 thus service tax liability does not arise.

situation 2: previous yr turnover is less than 10lacs but current yr turnover is more than 10lacs thus FOR THE CURRENT YR the assessee is liable to pay service tax for the difference of turnover and exemption limit = 1lac (11lac - 10lac)

situation 3: p.y turnover itself is more than 10lacs therefore the assessee is liable to pay service tax for THE PREVIOUS YR (11lacs) and THE ASSESSEE IS ALSO LIABLE TO PAY SERVICE TAX FOR THE CURRENT YR RECEIPT OF RS 6LACS, question of exemption or any other deduction does not arise, as the assessee's previous yr's gross receipt is more than 10lacs,

CONCLUSION:

once the receipts crosses 10lacs IN ANY FINANCIAL YR, the assessee wil be liable to pay service during tat yr of exceeding 10lacs AND DURING SUBSEQUENT YRS IRRESPECTIVE OF THE GROSS RECEIPTS EARNED DURING THE SUBSEQUENT YRS.

pl tell the limit of service tax on freight