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Service tax exemption

SATISH RAMESH ATHALEY (ACCOUNTANT) (24 Points)

21 June 2012

Sir,

One of my friend is not registered firm but holds a PAN card.

He is providing services for the first time and hence need to clarify regarding the Service Tax.

As the exempted limiti is 10 Lacs is he exempted from Service Tax ?

Please let me know how he can raise the Invoice?

Thanks and Regards,

Satish

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15 Replies

RAMESH CHANDRA SHARMA (munka istentisztelet) (899 Points)
Replied 21 June 2012

IF THE TURNOVER DOES NOT EXCEED RS 9 LAKH THAN THERE IS NO NEED TO GET REGISTERED......

HE IS ENTITLED FOR THE FIRST 10 LAKH EXEMPTION .....

HE IS REQUIRED TO ISSUE INVOICE WITHIN 14 DAYS FROM THE DATE OF COMPLETION OF SERVICE OR RECIEPT OF PAYMENT WHICHEVER IS EARLIER......

Arun Jain (Account Professional) (479 Points)
Replied 21 June 2012

As your friend is exempted from service tax being having turnover of less than 10 lac, he can raise invoice without service tax, invoice will have same as in service tax but he will not charge service tax on invoice. And can write his name and pan no. on invoice. and simple can get hisbill books printed even.

if there is anything specific you want to ask kindly confirm.

Monith Agarwal (MR.) (117 Points)
Replied 21 June 2012

HE NEEDS TO GET REGISTERED IF HIS TURNOVER EXCEEDS 9LACS PA. ALSO IF HE IS IN REVERSE CHARGE AMBIT HE NEEDS TO GET COMPULSORILY REGISTERED.

divva (Industrial Trainee @ Ashok Leyland) (348 Points)
Replied 21 June 2012

Yes, Upto 10lakhs ST not applicable for small service provided.

He must register for ST when his turnover crosses 9Lakhs.

He can charge service tax on his invoice only after registering & obtaining ST reg number provided his turnover crosses 10lakhs.

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 21 June 2012

Originally posted by : RAMESH ...cma final
	IF THE TURNOVER DOES NOT EXCEED RS 9 LAKH THAN THERE IS NO NEED TO GET REGISTERED...... HE IS ENTITLED FOR THE FIRST 10 LAKH EXEMPTION ..... HE IS REQUIRED TO ISSUE INVOICE WITHIN 14 DAYS FROM THE DATE OF COMPLETION OF SERVICE OR RECIEPT OF PAYMENT WHICHEVER IS EARLIER......

Agreee with the above quote;

KRISHNAPRASAD IYER (B.Com , CA Final) (657 Points)
Replied 21 June 2012

He needs to register only when his turnover crosses 9 lakhs and pay service tax for the turnover over and above 10 lakhs.

However, once he is registered , he should pay service tax on the total turnover from next year onwards

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 21 June 2012

Exempted from service tax being having turnover of less than 10 lac, he can raise invoice without service tax, invoice will have same as in service tax but he will not charge service tax on invoice. And can write his name and pan no. on invoice. and simple can get hisbill books printed even.

CA HIMANSHU (ARTICLE) (317 Points)
Replied 21 June 2012

Originally posted by : RAMESH ...cma final
	IF THE TURNOVER DOES NOT EXCEED RS 9 LAKH THAN THERE IS NO NEED TO GET REGISTERED...... HE IS ENTITLED FOR THE FIRST 10 LAKH EXEMPTION ..... HE IS REQUIRED TO ISSUE INVOICE WITHIN 14 DAYS FROM THE DATE OF COMPLETION OF SERVICE OR RECIEPT OF PAYMENT WHICHEVER IS EARLIER......

KARANDEEP,CA,B.Com,CS FNL (JOB) (457 Points)
Replied 21 June 2012

agreed with All the expert.

rajkumar rajasekharan nair (dombivili) (74 Points)
Replied 22 June 2012

Yes, Upto 10lakhs ST not applicable for small service provided.

He must register for ST when his turnover crosses 9Lakhs.

He can charge service tax on his invoice only after registering & obtaining ST reg number provided his turnover crosses 10lakhs.

RENGARAJ R.K (ADVOCATE) (7557 Points)
Replied 22 June 2012

From 01.07.2012 onwards, the first 10 lacs exemption is based on the invoices raised, and earlier it was receipt based.

He must apply for registration when his taxable turnover reaches 9 lacs.

rengaraj r.k

CA HIMANSHU (ARTICLE) (317 Points)
Replied 22 June 2012

E/N 6/2005(SSP EXEMPTION) Upto 10lakhs of invoice issued(POT RULES 2011) ST not applicable .He must register for ST when his turnover crosses 9Lakhs.He can charge service tax on his invoice only after registering & obtaining ST reg number provided his turnover crosses 10lakhs.