Service Tax Limit

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Vishal Doshi (Querist)
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26 February 2010 If single person having two (2) proprietary firms providing same services under both the firms & turnover under both the firm is less then the limit prescribed under Service Tax Law i.e 9 lacs p.a, whether the turnover of both the firms is to be consider as combined turnover for Service Tax exemption limit of Rs 9 lacs p.a ? Whether proprietor is liable to pay service tax under both the firm even turnover of the individual firm is not exceeding Rs 9 lacs p.a ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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26 February 2010 Total turnover of both the firms to be seen for limit of service tax. Yes if the total turover from both the firms is exceeding 10 lakhs then service tax payable though the individual firms turnover does not cross 10 lakhs