What is the Turn over limits for Service Tax , is there any measures for the same,
Please explain from Basic ST.
9 Replies
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 28 November 2008
While presenting Budget 2008 in the parliament, the Finance Minister announced an increase in the exemption threshold limit to Rs 10 lakhs and added 4 services into the basket of services covered under the Service Tax Act.
They are, Asset Management Service provided under ULIP, to bring it on par with those under Mutual Funds; services provided by stock/commodities exchanges and clearing houses; customized software, to bring it on par with packaged software and other IT services; and right to use goods, in cases where VAT is not payable.
He also clarified that the money changers, persons running games of chance and tour operators using contract carriage vehicles are liable to service tax.
About 65000 small service providers are expected to benefit from the raising of the threshold limit of exemption for small service providers from Rs. 8 lakhs to Rs. 10 lakhs.
Hemavathi.S
(CA Final)
(42 Points)
Replied 28 November 2008
10 Lacs is the basic exemption. If gross receipts exceeds 10 Lacs in a year, ST is attracted.
ST should remitted on or before 5th of succeeding month in challan GAR - 7
Half yearly returns (ST - 3) should be filed. For 1st half year - on or before 25th October & for the 2nd half yera - on or before 25th April.
Hope this will help you.
Krishna chandra gouda
(Pvt. Service)
(20 Points)
Replied 28 November 2008
| Originally posted by :B.Nagesh | ||
| " | What is the Turn over limits for Service Tax , is there any measures for the same, Please explain from Basic ST. |
" |
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 28 November 2008
10,00,000/- (Rupees Ten Lacs Only)
Rinky jhanwar
(CA )
(94 Points)
Replied 30 November 2008
| Originally posted by :B.Nagesh | ||
| " |
What is the Turn over limits for Service Tax , is there any measures for the same, SSI Exemption Each Yr Service up to 10 lakh Exempt [Amendment in yr 2008] if PY service rendered up to 10 lakh there is some condition also require to be fullfill
|
" |
(Guest)
| Originally posted by :Ash Jain | ||
| " | I have an Authorised Nokia Care Centre I have applied and obtained service tax registration numberas it was compulsory for all care partners to take a service tax number BUT My turover shall not exceed 10,00,000/- and Presently I am also not collecting any service tax from customers What shall be my liability towards service tax But my Turnover shall not exceed 10,00,000/- (Rupees Ten Lacs Only) Kindly help me on this matter about my liability on service tax and obliged |
" |
shabana
(accountant)
(21 Points)
Replied 11 May 2010
What is the Turn over limits for Service Tax Earth moving & infrastucture firm?
(Guest)
Dear,
Small service providers whose total value of services provided (including exempt and non-taxable services) is less than Rs 10 lakhs in previous year are not required to pay service tax in current financial year till they reach turnover of Rs 10 lakhs. Clubbing provisions can apply.
Exemption is linked with preceding year’s turnover.
‘’aggregate value of taxable services rendered by a provider of taxable service from one or more premises should not have exceeded Rs.10 lakhs in the preceding financial year”
Aggregate value of taxable services covers
Services in respect of which service tax is payable and Services in respect of which no service tax has been paid by virtue of any general exemption or specific exemption.
Manner of availing exemption.
Aggregate value not exceeding Rs.10 lakhs means
The sum total of first consecutive payments received during a F.Y towards gross amount charged by service provider towards taxable services till the aggregate amount of such payments is equal to Rs.10 Lakhs.
Ex. Security agency received the following payments
20.04.2010 Rs.5,20,000
26.06.2010 Rs.3,00,000
27.07.2010 Rs.3,20,000
Total consecutive payments Rs.11,40,000
At this stage security agency will claim threshold exemption up to Rs.10 lakhs and pay the tax on the balance of Rs.1,40,000.
Thereafter, on all payments received from 27.07.2010 to 31.03.2011 the security agency will have to pay tax.
Regards
K.Ilayaraja
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