Limit of Rs 10 lakhs on pay. of Ser tax for Hotel ind.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2011 This is in regard Service Tax for Hotel industry .I want to know whether Service Tax is to be collected & paid on crossing the amount of Rs.10 Lakhs ?
What is the Tax liability status for the amt. before Rs. 10 Lakhs ? Is Service tax to be paid for that amt. also? Kindly advice.
Thanks...

CA Navin Jain

CA Navin Jain (Expert)
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20 July 2011 Registration is required if turnover exceeds Rs 9 lakhs per annum.

if total value of services provided (including exempt and non-taxable services) is less than Rs 10 lakhs in previous year are not required to pay service tax in current financial year till they reach turnover of Rs 10 lakhs.