A person has started Travel Agency (other than Air/Rail)on 1st April 2010. His receipt is less than Rs.9Lakhs. Can he voluntarily take Service Tax Registration and claim Basic exemption of Rs.10Lakhs?
When he approach a service tax officer, the Officer said that if he voluntarily registered then he cannot claim the basic exemption. Is it correct?
10 June 2010
Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds Rs.10 lakhs shall make an application for registration within a period of thirty days of exceeding the aggregate value of taxable service of Rs.10 lakhs. The limit of Rs.10 lakhs is for one year. However this exemption is not available if you have crossed Rs.10 lakhs in the previous year. If you have not crossed Rs.10 lakhs of in the last year then you are eligible to avail the exemption for this year upto Rs.10 lakhs after which you have to collect and pay service tax to the department. If you exceed Rs.10 lakhs this year you will not be eligible to avail the exemption for next year
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