Exemption limit for small scale service providers: budget 12

Hello Sir, actually there is not any change in this budget for the turnover limit for service tax registration and return filling.

The same thresh hold limit of Rs. 10,00,000 is continued there is no change

There is no change.

However, there is confusion among many that there is a change. The only change that was made was, earlier, the total of receipts during the previous year was the criteria to decide whether the person is a small service provider or not.. Now, it will be based on the aggregate value of invoices.

Ex. If you issue invoices for 11 lakhs, but dont receive even a single rupee, you're no longer a small service provider as you have issued invoices exceeding 10 lakhs..

Hope this clarifies..

But in the budget, it is clerly mentioned that "Small service provider exemption increased from Rs. 10L to Rs. 50L. What is it?

Originally posted by : Anoop
	But in the budget, it is clerly mentioned that "Small service provider exemption increased from Rs. 10L to Rs. 50L. What is it?

Same confusion led me to create this topic. But small service provider upto 50 lacs can pay service tax on receipt basis rather than accrual basis. That is the change!

If the total annual income exceeds 10 lakhs, Is there any exemptions on service tax for the first 10 lakhs of annual income ?