service tax exemption

This query is : Resolved

PRABHAKAR (Querist)
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15 September 2010 our client pays service tax to manpower supply agency in 2010-11, however during this year, the turnover is unlikely to exceed Rs. 10 lakhs. but during 2009-10, the turnover had exceeded Rs. 10 Lakhs and in 2008-09 it was below Rs. 8.00 Lakhs

My question is whether during this year, i.e. 2010-11 should we pay service tax as turnover is unlikely to exceed Rs. 10 lakhs.

please advice me

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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15 September 2010 Yes you are required to pay service tax as your turnover exceeded the limit during the preceding year.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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15 September 2010 Service tax Expemption limit 10 lakhs. now you should registered and pay service tax.

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CA. Praveen Narayan

CA. Praveen Narayan (Expert)
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15 September 2010 Since the turn over of your clent exceeds Rs. 10 Lakhs in previous year, they are not eligible to get SSI exemption in current year. Hence, they are required to collect and remit service tax.. Hope you are satisfied with this explanation.. take care..