Exceeding service tax limit

Queries 2207 views 9 replies

I have formed a new company in April 2010 to provide services. I expect my revenue from services to cross 10 lakhs by December 2010. Will I have to levy service tax from now or is the first 10 lakhs exempted from Service Tax?

Thank you in advance to your help.

Replies (9)

The first consecutive payments towards taxable services upto 10 Lakh is exempt in your case. You need to charge service tax after the turnover exceeds 10Lakh.

Mr. shyam

In this case if taxable services crosses 10 lakhs  , he should pay on full amount or after exemption of 10 lakhs ?

He has to pay tax on turnover in excess of Rs. 10L. The first 10 lakh is exempt, even if the turnover exceeds the threshhold during the year.

if once the limit of 10lac is crossed then int the next financial year i have to pay the tax on the every amount wheather it is greater than or less than 10lac. m i right na

Yes.

If the Turnover exceeds Rs. 10L in year 1, Exemption is not available in year 2.

Daer Friends

In continuation of above pl. let me know if Exempted Export TO is 15 lacs and taxable is 2 lakhs whether it is liable to pay service tax on 2 lacs ?

In the given case, service tax is not applicable on Rs. 2 Lac.

Taxable Turnover of Rs. 10 L is exempt. As per explanation (B) to para 3 of notification no. 6/2005-ST, dated 01-03-05, thr term "aggregate value not exceeding ten lakh rupees" does not include exempted services.

Hello,

I have a question regarding service tax. 

I My turnover for 2008-2009 was 12 lac approx and for 2009-2010 (last financial year) was 12.5 lac.

I am a software developer and providing software services to foreign clients, so all my income is coming under Service tax Exempt.

Please let me know do I require Service tax registration number?

because i have no service tax to pay (export of s/w services to foreign clients is exempted under service tax). 

If yes, Service tax number is required in my case, then will there be any late fee or charge due to not applied for last 2 years. Also will this affect my IT return (means any change in that also due to this)/

Please let me know asap if possible.

 

The first consecutive payments towards taxable services upto 10 Lakh is exempt in your case. You need to charge service tax after the turnover exceeds 10Lakh.



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