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Service tax rs. 10 lakhs exemption

samiksha nagar (Student CA Final) (168 Points)

07 April 2014

I need an opinion about on which receipts limit of Rs. 10 Lakhs shall be taken. whether it will be taken including Service Tax or excluding it. For example, if receipts including Service Tax upto March is Rs. 1201950 & excluding Service Tax is Rs. 1069731. Now, on which portion service tax is payable? Please suggest me.

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12 Replies

Akshay Garg (Indirect tax trainee) (457 Points)
Replied 07 April 2014

Service tax is payable on value of service as per the sec 66B of the act and if you have collected taxes also thn the amount should be reduced by service tax and in case no service tax is collected reverse calculation needs to be done by reducing the service tax amount and thus discharging service tax liability.

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praveen (Chartered Accountant) (6971 Points)
Replied 07 April 2014

See firstly i suppose ur speaking about the 10 Lakhs exemption available for SME. If you have collected service tax you have to pay it. you wont have an option of not paying and claiming exemption. If you have not collected service tax atleast for the first 10 Lacs then you can claim the exemption .

Prakash Kumar Singh (student) (26 Points)
Replied 07 April 2014

Service tax is chargable on value of service excuding service tax .but if u have alredy collect it then ,it will subject to adjestment with output service tax.

suchinder (student) (103 Points)
Replied 07 April 2014

I totally agree with Mr. Prakash kumar singh that if you have charged service tax then you have to pay it to the govt. Whether your total receipt exceeds 10lakhs or not. as per your question you have charged service tax now you have to pay service tax and file service tax return. Suchinder tanwar

anju (Accountant) (24 Points)
Replied 07 April 2014

Yes I agree with suchinder

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astha (sikar) (21 Points)
Replied 07 April 2014

I also agree wid suchinder .

Sandeep Mangal Agarwal (Chief Accountant) (199 Points)
Replied 07 April 2014

Agreed with Suchider...

Dharmista (CA Business) (24 Points)
Replied 08 April 2014

Agree with Mr Suchinder

samiksha nagar (Student CA Final) (168 Points)
Replied 08 April 2014

thanks to all!!

rajeev (nnnone) (224 Points)
Replied 08 April 2014

Dear friends I have one query the exemption of 1000000 if services of previous year does not exceed 1000000 is applicable for once or it is based on every subsequent years company coming.

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suchinder (student) (103 Points)
Replied 08 April 2014

Mr. Rajeev If in a f.y your gross receipt exceeds 9lakhs then you are required to get registered for service tax but you are not required to charge service tax. once you exceeds the limit of Rs.10lakhs then you are required to charge service tax and once you charged service tax then you have to charge service tax on your services whether your total receipt in a f.y is below Rs.10lakhs or more then Rs.10lakhs.