yashsr (CA) (2285 Points)
21 March 2012Hello,
What is the exemption limit for Small Scale Service Providers which earlier was Rs.10 lacs(and Regn required when taxable services Rs.9 lacs) after budger 2012?
Vishal Aggarwal
(Working at Lalit Purushottam Dass & Co.)
(38 Points)
Replied 21 March 2012
Hello Sir, actually there is not any change in this budget for the turnover limit for service tax registration and return filling.
venkata narayana reddy m
(ARTICLED STUDENT)
(273 Points)
Replied 21 March 2012
The same thresh hold limit of Rs. 10,00,000 is continued there is no change
CA Ganesh Karthik
(Chartered Accountant)
(368 Points)
Replied 22 March 2012
There is no change.
However, there is confusion among many that there is a change. The only change that was made was, earlier, the total of receipts during the previous year was the criteria to decide whether the person is a small service provider or not.. Now, it will be based on the aggregate value of invoices.
Ex. If you issue invoices for 11 lakhs, but dont receive even a single rupee, you're no longer a small service provider as you have issued invoices exceeding 10 lakhs..
Hope this clarifies..
Anoop
(Service)
(345 Points)
Replied 22 March 2012
But in the budget, it is clerly mentioned that "Small service provider exemption increased from Rs. 10L to Rs. 50L. What is it?
yashsr
(CA)
(2285 Points)
Replied 22 March 2012
| Originally posted by : Anoop | ||
 |
But in the budget, it is clerly mentioned that "Small service provider exemption increased from Rs. 10L to Rs. 50L. What is it? |
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Same confusion led me to create this topic. But small service provider upto 50 lacs can pay service tax on receipt basis rather than accrual basis. That is the change!
Madhukar
(self)
(25 Points)
Replied 04 April 2012
If the total annual income exceeds 10 lakhs, Is there any exemptions on service tax for the first 10 lakhs of annual income ?
CAclubindia
