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.
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..
CAclubindia
