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a co/firm is providng three diffrent services to its customers on which service tax is chargeable. these services are custom packing , freight outward and royality. suppose in hte year 2009-10 amount of services is more than 10lakhs. my query is  whether service tax is chargeable on all the services or only on that service whichhave cossed the limit of 10lakhs.

2. suppose in the the year 2010-11 none of the service has crossed the limit of 10 lakhs. is service tax still charageable on the services because of the fact that it was chargeable last year.

3.is service tax charageable on rent on commercial property?

pls reply if sure

thanx n regds

Replies (4)

I will suggest you to post this query and ask experts on the expert column....Thank you Vijay ji

1.Service tax is leviable once the gross receipt of the company exceeds 10 lakhs i.e., including all services so the Company has to charge service tax once it exceeds 10 lakhs.

2. once service tax exemption limit is exceed than for the following years even if the services is less than 10 lakhs company has to charge service tax on all services.

3.Yes service tax is applicable on rent on commercial building Refer section 65(90a) and section 65(105)(zzzz) of the Finance Act.

Completely agreed with Mohan

It is always better to charge service tax every year even if in between your gross receipt is less than 10 lacs.


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