Liability of Service Tax

This query is : Resolved

Raghav (Querist)
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16 December 2010 Dear Sir,

In 2009-10 one has less than 10 lacs turnover he did not get registered with the service tax department.

In 2010-11 he get registered in service tax department when the turnover crossed the exemption limits of 10 Lacs because his total turnover was 50 Lacs.

At the time of making payment of service tax in 2010-11 should he pay the service tax on total turnover or less than first 10 lacs becuase of exemption limits specified by the department.

Thanks & Regards,
Raghav

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 December 2010 He should pay the service tax on total turnover less first 10 lacs becuase of exemption limits.

Raghav

Raghav (Querist)
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22 December 2010 Dear Sir,

In 2010-11 entity paid the service tax as said. I need one more clarification if in 2011-12 the income is less than 10 lacs. IS he liable to pay the service tax for that income or he will again get the benefit of exemption??

Thanks & Regards,
Raghav Jha

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 December 2010 If exemption has been taken in the previous year and turnover exceeds Rs. 10 lakhs in the previous year then next year no exemption.

If in F. Y. 2011 - 12 income less than Rs. 10 lakhs liable for service tax fully.

Then in F. Y. 2012 - 13 he will again get exemption from service tax upto Rs. 10 lakhs