CA Final
65 Points
Joined September 2012
Firstly to determine whether service tax is payable by a person, one needs to confirm that he doesn't fall in the negative list of services.
If the service of that person falls in that list, he doesn't come under the perview of such tax liability.
If the service of that person is not in that list, it means that tax shall be payable for that service.
Then the limit for Rs. 9,00,000/- and Rs. 10,00,000/- comes into picture.
If the value of the service provided exceeds or reaches Rs. 9,00,000/- in any year, the person needs to get himself registered with CBEC (Central Board of Excise and Customs) within 30 days of gaining such value.
Later on crossing Rs. 10,00,000/- in any year the person becomes liable to pay service tax every year from that year onwards.