EXEMPTION OF 10 LACS.

This query is : Resolved

Guest

Guest (Querist)

20 September 2009 Is it true so that exemption of 10 lacs is available only for first year and for subsequent years it is taxable for whole amt.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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20 September 2009 To an extent it is correct. If in one year the turnover crosses 10 Lacs, then service tax is chargeable on full amount next year. But if in next year turnover is less then 10 lacs, then in that year it is fully chargeable but not in the next year, i.e third year. In that case, the limit shall apply again. Hope I am clear. If not then pls tell me again.

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CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
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20 September 2009 E.G. YEAR 09-10 11 LACS S.T APPLICABLE FOR THIS YEAR AND NEXT YEAR MEANS YEAR 10-11 BUT IN YEAR 10-11 YOUR TURNOVER IS 8 LACS THEN ST NOT APPLICABLE FOR THE YEAR 11-12.

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