04 January 2010
This basic exemption limit provided in Notification No. 6/2005-ST has two aspects.
First 10 lakh for the current financial year is aggregate of first consecutive receipt for taxable service amount (excluding exempted service amount). In this provision the excess amount receipt shall be liable to service tax.
The second 10 lakh pertaining to preceding year is for value of taxable service (including exempted service) rendered in the preceding year.
This exemption is not applicable for the person liable to pay tax in terms of the section 68(2).
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