Service tax exemption limit 10 Lakhs ?

Page no : 2

kshirsagar neha (Accounts and finance department- HOD ) (34 Points)
Replied 16 October 2013

Originally posted by : kshirsagar neha
	Dear Sir, We are " Educational Training Institute." ( partnership firm - 2nd year ) we collect affiliation fee and other activities fee related to science projects. If our collection goes above 9.25 L . We are liable to take Registration of Service TAX? ( Last year TO is 7.5L ) Or purchase value is deducted from this collected amount and balance amount is liable to service tax. Neha

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Bobby MJ (Article STUDENT) (111 Points)
Replied 16 December 2013

Originally posted by : pravin
	hi 1. Pvt ltd co can avail the benift of 10 lakhs in the first year. Notification is applicable to the assessee automatically. Option is only not to avail the benifit. Therefore exemption is automatic. 2. When there is no liability to collect Service Tax- ST collected should be returned back ( as said above) or should be treated as income. 3. In case the co goes for Reg. ST has to be collected on the 3 Lakhs bill also. hence it is advised to return the ST collected.

Please clarify my doubts. If any private limited company registered with ST department, they can claim exemption of ₹10 lakhs in the year of commencement..?? Or they have to pay service tax even they have not collected in their invoices...?? i.e., considering the bill amount is inclusive of service tax.