sreekumar (Consultant) (34 Points)
30 January 2013Hi
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.
Roshan Thomas
(C.E.O )
(356 Points)
Replied 30 January 2013
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
Sonu Kumar
(Account Manager)
(665 Points)
Replied 30 January 2013
Yes You Can get the exemption if you want..........
CA BARKHA MITTAL
(B.COM, CA)
(149 Points)
Replied 30 January 2013
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 30 January 2013
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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