Service tax exemption limit 10 Lakhs ?

Rajesh Poddar (Chartered Accountant) (321 Points)

05 February 2011  

Dear Sir,

One Private limited company just incorporated has done two billings one of Rs. 5 Lakhs and one of 3 lakhs to two different clients. Now this is the only two bills till 31st March. and payments also received.

My query is that on 5 Lakhs the pvt limited company has collected service tax and on Rs. 3 lakhs the service tax is not collected.

Whether they need to register with service tax department, and also whether the private limited company can get the benefit of 10 lakhs in the 1st year.

what about the service tax collected on 5 Lakh bill and on Rs. 3 lakhs service tax not collected ?

Please reply

Rajesh Poddar