Service tax exemption limit criteria

1. Though you are voluntarily registered, there is no need to charge ST till you cross the limit of Rs.10 lacs (in the CY or PY)
2. But you need to file nil returns

Thank You Poonam Madam.

 

for the Next Financial Year the Limit of Rs 10,00,000 is started from Zero Again or it is Cummulative of Previous year.?

 

My name is not poonam :) Limit is not cumulative and it is applicable separately for each FY

Sorry Poornima Maam.

 

Thanks for your Prompt Reply..

you need to file return declaration value exempted under notification No.33/2012-ST

If Threshold limit not exceeds in preceeding previous year then ST has to be paid only on over and above the limit i.e. 10 lacs in current year. If limit exceeds in proceeding previous year then ST has to be paid on the whole amount in the current year even if it not exceeds 10 lacs in CY. For an new assesse there is no turnover in proceeding previous year so ST has to be paid over and above 10 lacs. Hope this helps.

Yes, Mr. Ranganathan...nice reply..

Dir rem is covered under rcm....does it mean co must pay st on every re of rem without any treshold limit??

Yes, if the director -company relation doesn't satisfy the employee-employer criterion then any remuneration paid to director attracts service tax under rcm and since there is no threshold limit specified then company must pay ST on every Re expended.