Service tax first year

Queries 907 views 5 replies

Hi

 

I want to start a company. When I went for service tax registration, they told me that I can not get the 10L exemption for the first year. Is that true?

If my turnover is less than 10L, for  the first year of my service, How can I get the exemption.

Thanks in Advance.

Replies (5)

In the first year you will exemption upto Rs 10 lakhs and you will be liable to pay tax only value of taxable service in excess of Rs 10 lakhs.

 

Since you have not mentioned the nature of service that you provide please note that this exemption is not available to

(A) service providers using the brand name of another person or

(B) service provider liable to pay tax under reverse charge mechanism except GTA

 

Agreed with Mr. Roshan Thomas.

Yes You Can get the exemption if you want..........

Registration will be required if gross receipts crosses 9 Lakhs & exemption will be available in first year of registration. Exemption depends upon the condition that if in previous year Gross Taxable Receipts is less than Rs. 10 Lakhs then no service tax liablity arises in next year. If in Previous year Gross Taxable receipts exceeds Rs. 10 Lakhs then in next year on whole amount service tax will be levied.

Yes one can avail exemption for the first 10 lacs, provided he is not using the brand name for his services.  So, for the first year, the assessee is eligible for exemption for registration as well.


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