Thanks for your prompt reply. But my dobut remains due to reasons below:
'taxable turnover' is with reference to the aggregate taxable turnover of service, so what is taxable service.
Section 65B of the Finance Act, 1994 as amended defines Taxable Service as:
(51) "taxable service" means any service on which service tax is leviable under section 66B;
So the term used here is 'leviable' means the tax may or may not be actually levied and collected u/s 66B.
Further, Section 66B says,
"66B. There shall be levied a tax (hereinafter referred to as the service tax) at the rate of twelve per cent. on the value of all services, other than those services specified in the negative list, provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed."
In my opinion, Any service, which is not specified in the negative list (sec 66D), and provided in the taxable territory by one person to another is a Taxable Service, even though it is fully exempted by any notification. In case of Fully exempted service, the tax is levied at 0% rate.
Again, in Point of Taxation Rules, 2011, taxable service is defined u/s 2(f) as: “taxable service” means a service which is subjected to service tax, whether or not the same is fully exempt by the Central Government under Section 93 of the Act;
Therefore, the Rs. 50 Lacs limit should be taken from 1st invoice and actual benefit is available only on Rs. 40 Lacs after availing the threshold exemption of Rs. 10 Lacs upto which there is no tax.
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