06 January 2015
Service tax is not applicable if amount of different invoices issued of services rendered during preceding year doesn't exceed Rs 10 lac. for instant:- Suppose 4 bills are issued during the FY 12-13 by service provider. Bill no1: Amount 4 lac. service tax not applicable. Bill no2: amount 4 lac. service tax not applicable. Bill no3: amount 2 lac. service tax not applicable. total amount of 3 bills don't exceed 10 lac that's why no tax liability of service tax will be applied. Want to know, would the same exemption be applied in the next financial years or service tax is applicable the moment next bill is raised becoz it exceeds the exemption limited of Rs: 10 lac????
06 January 2015
Seetharaman, year in which he gets registration, exemption is available upto Rs 10 lac, & in the next year exemption limit gets decrease from 10lac to 9 lac. would the exemption be decreasing from year to year or if his service amount of different years are below than the exemption limit, would he be entitled to pay tax???
06 January 2015
Irrespective of registration 10lacs exemption limit is available until his turnover exceeding 10lacs. Once exceeded the limit no exemption from next year.
06 January 2015
If in the previous financial year aggregate value of taxable services provided was more than 10 lakh but this year aggregate value of taxable services provided is less than 10 lakh them you start paying service tax from rupee one.
Exemption of ten lacs is for one time only.. once u got registered with service tax, there is no exemption u had to pay it from rs 1
07 January 2015
Ankit Ji, Suppose in FY11-12, amount of total services Rs 5lac, in FY12-13 amount services Rs 3 lac, in 13-14 amount 2 Lac, & in FY 14-15 amount of service tax 3 lac, Does it mean registration will take place in FY13-14 becoz it cross the limit of service tax registration & service will be chargeable to tax in FY 14-15, becoz it exceeds the exemption limit of Rs: 10Lac. Is above calculation is correct????????
08 January 2015
CA.Ankit, are you sure once registration is obtained , no exemption can be claimed and SSI exemption is one time?
i am reproducing(part) article written by CA. Kamlesh Singh Chauhan FCA, LL B, DISA(ICA) Email: ks_chauhans@yahoo.com
What is the previous year and current year taxable turnover criteria to reckon “aggregate value” for the applicability of threshold exemption: For the entity carrying on business in previous rear also, aggregate value of taxable turnover should not exceed Rs. 10 lakhs to avail threshold exemption in current year. Further, in current year, taxable turnover eligible for falling in “aggregate value” upto Rs 10 lakhs will remain exempt and afterwards such turnover/receipts become taxable. It is pertinent to mention here that applicability of this exemption notification is evaluated by checking previous year’s turnover only, so if the entity exempted in one year and taxable in ensuing year, may again become eligible and exempted under this notification in the current year if it falls within the specified limit of “aggregate value” in any previous year.
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