23 November 2012
Dear Sir, One of my client has registered himself with service tax. In first year his total service comes to Rs.6,50,000. in second year it comes to Rs.6,00,000. & in current year it is Rs.3,75,000. So, my question is whether my client is liable to pay service tax or not considering basic exemption of Rs.10 lac every year. OR he is liable to pay service tax in second year when he crossed rs.10 lac that means in second year liable for Rs.2,50,000 & from third year full amount Rs.3,75,000/-. Kindly advise. Thanking You.
CAclubindia
