A COMPANY\FIRM NOW SERVICE PROVIDER BUT IT KNOW THAT THEY CROSS LIMIT RS. 10 LAKH.WITHIN TWO OR THREE MONTHS IN THIS CASE IT IS LIABLE TO PAY SERVICE TAX ON RS. 1 TO 10 LAKH.
20 May 2013
no, if they will cross the limit for the 1st time, then there is exemption upto Rs 10 lacs meaning there by service tax on;ly payable after billing of 10 lacs, upto 10 lacs no tax. -notification 33/2012
though if they want to pay the tax from Rs 1 they can..as the above exemption is optional. another thing is that no above exemption allowed if the service provider is using some other big brand name.
Note: from the next year tax will be paid from rs 1 itself, means 10 lacs limit is only for the 1st time
CAclubindia
