Hemali Shanghvi (Owner) (136 Points)
18 October 2010
Hi,
I have a client who is into export of IT services and not required to charge service tax. However, recently he has started providing services to Indian companies and is required to charge service tax. Does the limit of Rs. 10 Lacs applicable specifically to Indian revenue or to the overall revenue? 
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14482 Points)
Replied 18 October 2010
Total Taxable income of service Tax 10 Lac.
![Rahul Gupta [CA,CS]](/img/avatars/my_avatars/413003.jpg)
Rahul Gupta [CA,CS]
(Asst Manager)
(39 Points)
Replied 18 October 2010
Provison tells about taxable service only. Other exempted or non taxable to be excluded for computaoin of Rs.10 Lacs
& the exemption of ten lakhs is available every year if you have not crossed the taxatble ten lakh limit in the previous year. If you cross the ten lakhs limit this year, then you cannot avail the exemption for the next year. Thus every years exemption availability is based on previous years turnover. The turnover in the previous year decides whether you can avail exemption this year.
Regards,
Rahul Gupta
Ami
(Assisstant Manager)
(21 Points)
Replied 18 October 2010
The definition of ' aggregate value not exceeding ten lakh rupees ' says that ' the sum total of first
consecutive payments received during a financial year towards the gross amount, as
prescribed under section 67 of the said Finance Act, charged by the service provider
towards taxable services till the aggregate amount of such payments is equal to ten
lakh rupees but does not include payments received towards such gross amount
which are exempt from whole of service tax leviable thereon under section 66 of the
said Finance Act under any other notification.
Harpreet
(* * * * * *)
(1670 Points)
Replied 18 October 2010
Agreed with above replies........thanx CCI Members
sreenivasulu reddy
(chartered accountant)
(40 Points)
Replied 18 October 2010
I fully agree with Rahul Gupta. It is the taxable services only that determine the turnover for arriving at basic exemption limit.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 19 October 2010
The export of taxable services as per the export of service rules 2005 are to be excluded form the calcuation for arriving at the 10 lakhs value of taxable services.
However it maybe examined whether the cenvat credit on inputs, input services and capital goods is not significant as the same are eligible fro credit. Further it maybe confirmed that the customer/ client is OR is not in position to avail the credit.
At times it makes sense to register before the limit has been reached.
vinay
(salary employee)
(37 Points)
Replied 22 November 2012
CA Darshak Shah
(Practicing CA)
(1889 Points)
Replied 25 November 2012
Yes Mr Vinay...Service Tax is applicable to you.
vinay
(salary employee)
(37 Points)
Replied 25 November 2012
Darshak sir, pls. give me the reason for applicabliity of service tax because export of service exempted from ST as per Service tax rule 2005
CAclubindia
