VIGNESH (Manager Finance &Accounts) (327 Points)
07 January 2010Total Receipts for the year exceeds 10 laks during the current financial year for my client, so i suggested my client to register for Service tax once his receipts crossed 9 laks, but my doubt is Whether 10 laks can be taken as a threshold limit and for the remaining recipt alone service tax is apllicable or for total receipts it is applicable? please clarify
pavanreddy
(Student)
(104 Points)
Replied 07 January 2010
service tax applicable only exceed amount of 10 lakhs(for eg : your client receipts are 12 lakhs in the first year your client will pay 20600 in the name of service tax(200000*10.3/100)) its applicable only first year only .in subsequent years your client will pay service tax in total receipts
CAclubindia
