Exemption limit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 July 2012 Hi,
A client’s total gross income in previous year is Rs. 9,75,500 in which Rs. 3,50,000 is from export of service (fees received in USD) and Rs. 12000 from interest income. Can you please suggest registration in service tax is mandatory or exempt? Please reply me with reference,
Thanks in advance

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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19 July 2012 Aggregate value of taxable service should be more than Rs. 9 lakhs, hence registration is not required.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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19 July 2012 Any provider of taxable service whose ‘aggregate value of taxable service’ in a financial year exceeds nine lakh rupees is required to get registration.

"Aggregate value of taxable service” means the sum total of first consecutive payments received during a financial year towards the gross amount, as prescribed under section 67 of the Act, charged by the service provider towards taxable services but does not include payments received towards such gross amount which are exempt from the whole of service tax leviable thereon under section 66 of the Act under any notification other than Notification No. 6/2005-Service Tax, dated the 1st March, 2005 [G.S.R. 140 (E), dated the 1st March, 2005].
Accordingly, export of service is not taxabla and not to be included in the turnover limit.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2012 thank you very much sir, It help me a lot.