Dear All
Service Tax exemption limit is Rs. 10 Lacs and after that services is chargeable, my question is:
1 . First Year turnover Rs. 12 lacs , Service tax on Rs. 2 lakhs after exemption of Rs. 10 Lakhs
2. Second Year Turnover Rs. 15 Lacs - Service Tax on Rs. 15 Lakhs or Rs. 5 Lakhs
Please resolve
First Year Service Tax on Rs. 2 Lakhs
Second Year Service Tax on Rs. 15 :akhs.
Awesome response by Devendra.....!!!!
query resolved...
As per Notification no. 33/2012, one of the condition for availing the threshold exemption of Rs. 10 Lacs is that the aggregate value of taxable services rendered by a provider of taxable service from one or more premises, does not exceed ten lakh rupees in the preceding financial year.
So, in the 2nd year, exemption is not available and tax is to be charges on full Rs. 15 Lacs value, because in the preceding financial year, the taxable value was more than Rs. 10 Lacs.
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