Service tax limit

This query is : Resolved

Guest

Guest (Querist)

20 June 2012 serice tax exemption query :
F.Y. 05-06 -TURNOVER Rs.5 Lacs
F.Y. 06-07 - TURNOVER Rs.9.5 Lacs (In the F.Y.06-07 we have to apply for Registration)
F.Y.07-08 - TURNOVER Rs.10.5 Lacs (means we have to charges service tax on 0.5 Lacs only for F.Y.07-08)
F.Y. 08-09 TURNOVER Rs.6 Lacs we have to charge service tax on entire Amount of Rs.6 Lacs .
BUT IN F.Y.09-10 turnover is 9 Lacs then service tax to be charges or not????????????????????????

because i have heard that once limit of Rs.10 Lacs is crossed then we have to charge service tax LIFETIME.

prasad

prasad (Expert)
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20 June 2012 It is not the case. The current threshold limit is Rs.10.00 lacs. If in any accounting year the receipts are below the limit then in the next accounting year u need not charge service tax till u cross the limit of Rs.10.00 lacs and only when, in any particular accounting year u cross the threshold limit, thereafter u r required to charge the Service Tax.
e.g.

2010-11 Recepits Rs.4.00 lacs (Below The limit) Charge Service Tax supposing in the earleir year u were liable to charge Service Tax.
2011-12 Receipts Rs.8.00 Lacs No Service Tax
2012-13 Receipts Rs.22.00 Lacs Charge Service Tax once u cross the limit of Rs.10.00 lacs.