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How to determine the value of exemption limit of rs.10lakhs

CA Garima (CA) (99 Points)

05 July 2012

Dear All,

My company has total turnover of Approx 18lakhs. We have mostly foreign clients. so we are exempted from service tax under Export of Service Rules. However, on domestic clients we may have to pay service tax. ut income from domestic client doent exceeds 10lakhs. it is much less. Do i need to pay service tax.? Plz reply.its urgent.

Thanks in advance.

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8 Replies

Forum D Saiya (Employee) (212 Points)
Replied 05 July 2012

As per my Knowledge when ur Company crosses the Turnover of Rs 9,00,000,then u have to get registered and when u cross 10lakhs u have to pay Service Tax.Currently if ur company is not crossing the limit then u are not liable to pay Service Tax.

CA Garima (CA) (99 Points)
Replied 05 July 2012

Thanks for replying.

We are registered in service tax. Our turnover is 18lakhs. But dat includes foreign clients on wich no ST is payable. i want to knw whether exemption limit includes or excludes export services & exempt services.

Forum D Saiya (Employee) (212 Points)
Replied 05 July 2012

If your turnover of taxable services goes above 9 lakhs in an accounting year with 30 days of applicablilityu have to get it registered.But Export services is not taxable services

1 Like

Abhijeet Jain (CA) (169 Points)
Replied 05 July 2012

Yes as per the new definition of 'aggregate value' under Notification No. 33/2012 dated June 20, 2012 only taxable services needs to be considered for threshold exemption benefit and it will not include exempted & export of service.

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CA Garima (CA) (99 Points)
Replied 05 July 2012

oh means we need not pay tax as our turnover frm domestic client dnt exceed ..good...thanx..ive jst paod Rs.2000 tax though..anyway..thanks to both of u..