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Service Tax Applicability

Govin Thapa (Sr. Officer - Audit & Taxation) (37 Points)

04 July 2009

Dear all,

Can ay one tell me , " what is the limit of income per month that the service provider has to pay a service tax"

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6 Replies

Madhukar N Hiregange (Chartered Accountant) (39039 Points)
Replied 05 July 2009

Unbranded services exempted upto Rs 10 Lakhs under Not.6/2005 provided previous years taxable service not exceeded Rs. 10 Lakhs.

Pravin (Asst A/c Manager) (28 Points)
Replied 22 July 2009

As per my knowledge Service tax is exempt( not need to charge) if Transport bill per Trip is not more than Rs. 1500/-. But if a Transporter gives a combine bill for all trips (single Trip amount does not exceed Rs 1500/-) at the month end whose total bill amount of all trips is more than 1500/-. In that case shall we are liable to pay Service Tax on Goods Transport. Pl suggest.

Pravin Thorat

Audit Officer

Pl Reply to pravingthorat @ rediffmail.com

Krutesh Patel (ACA) (727 Points)
Replied 25 July 2009

10 lakhs per year

Bidyadhar Buxi (Accountant) (41 Points)
Replied 29 July 2009

Hi All, We provide Samiana Services and we also provide transportation to deliver samiana materials. Wheather we have to charge Service Tax on Transportation also? Pls help us.

Poornima Chandran (Tax Consultant) (30 Points)
Replied 29 July 2009

Pandal and Shamiana Service has been subject to service tax in the period 01.08.97 to 01.06.98. Then after that, it was again brought to service tax from 10.09.04 .

If the value of transportation is included in the invoice value and you charge a markup or profit on the same, then it is subject to service tax.

However, if you are claiming reimbursement of your transport expenses without charging markup and all conditions specified in Rule 5(2) of Valuation Rules are being satisfied cumulatively, then you can exclude the value of transportation charges from the gross taxable value subject to service tax