service tax exemption and input credit

Dear Sir.

Rs 10,00,000.00 (TEN LAKH) is mentioned to save the TYNE SCALE SERVICE PROVIDER to exempt from the Service Tax net. Say a Small "Beauty parlour" whose Turnover is less then Rs ten lakh for a year, NO PROBLEM if it is nither registered with Service Tax nor collect Service Tax. But in the same status a "Beauty parlour" has registration and collect Service Tax. The second one has to Deposit the Tax Amount to the Authority. No mercy for the Below Ten Lakh Amount turnover in a year.

If the second one wants to discontinue the collection of Service Tax  he has to surrender the Service Tax Registration and act like the first one.

WILL YOU PLEASE MENTION FROM WHERE YOU FIND : YOU HAVE TO PAY SERVICE TAX ON 2 LAKH.

DEAR Mr ANIL K

DEALERS AND MANUFACTURER ARE REGISTERED WITH EXCISE
 

SERVICE PROVIDERS ARE REGISTERED WITH SERVICE TAX AUTHORITY. UNTILL AND UNLESS REGISTERED WITH SERVICE TAX AUTHORITY, YOUR CLIENT CAN NOT ASK FOR "SERVICE TAX"

YOU CAN CLAIM CENVAT CREDIT FROM EXCISE AND OR SERVICE TAX WHICH EVER IS CONVENIENT FOR YOU

Mr. Mukund,

For the purpose of exemption, Gross receipts are counted & not the gross billing. So the turnover means the gross receipts.

Secondly, If the gross receipts exceed 9 lakh, then the person has to get registered under service tax law. Gross billing is immaterial.

Answer to your 3rd question -

1st year       800000  - Benefit is available provided the gross receipts of the immediately preceding previous year did not exceed 10,00,000.

2nd year    1200000 - benefit available upto Rs. 10 lakh. Service tax is payable on 200000

3rd year      800000 - Service tax is payable right from first rupee. The benefit is not available.

4th year    12,00,000 - same as in 2nd year.