Exemption limit in sevice tax

Please specify the exact nature of job work performed by you and your status.

In simple words, if you are a proprietor or partnership firm and you are giving your job work services to any body corporate (say any Pvt. Ltd. or Ltd. company), then you have to pay only 50% tax and balance 50% is required to be paid by the service receipient i.e. the company. If your taxable services were less than Rs. 10 Lacs in the preceding financial year, you need not pay service tax upto Rs. 10 Lacs this year.

For valuation purpose, depending on nature of job work, you can take benefit of paying service tax on service portion 40%/60%/70%. 

Regards

tax2001-it @ yahoo.com