Service tax limit on foreign income + domestic

I undertstand for a Private limited Company in India there is a Threshold Limit of 10L per annum so if Turnover is less than 10L in an annum company does not have to deduct Service tax and there is NO requirement of Registartion under Service Tax,is that correct ?

Now If a Private limited Company in India has Turnover above 10L in a year but Domestic Income is only say 50000.00 and all rest of income is in Foreign Currency ,what will be the requirement?

 

Replies (4)

Your understanding is partly correct. If your turnover < 10L, you need not charge service tax but if > 9L you need to register with the Dept but not charge tax.

If a Private limited Company in India has Turnover above 10L in a year but Domestic Income is only say 50000.00 and all rest of income is in Foreign Currency ,you need not charge tax on 50,000 domestic invoicing.

Regards,.

Thanks,is their a rule/circulat defining that Turnover to be consider is for Domestic only?

In response, I have to say that export of service is outside the ambit of service tax levy. Now, a service will be treated as export if all 6 conditions specified under rule 6A of ST Rules 1994 read with POSR 2012 are complied with.

I asked this question to some of my Learned Friends of this illustrious Forum. Having considered all of those, it may be concluded that Notification 33/2012 issued on 20/06/2012 is the guiding one in this aspect.

Here 'aggregate value' has been defined and services which are exempted under section 66B is to be excluded for registartion and hence chargeability purpose.

Export is exempt under section 66B and hence only domestic service turnover is to be reckoned for registration and other purposes.

Regards,

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