Service tax

 First Year Service Tax on Rs. 2 Lakhs

Second Year Service Tax on Rs. 15 :akhs.

Awesome response by  Devendra.....!!!!

Second Year Service tax will be payable on Rs. 15 Lakhs as previous year gross receipts was more than Rs. 10 Lakhs. If previous year's gross receipts would have been less than Rs.10 lakhs then in second year service tax will be payable on Rs. 5 lakhs.

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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