Threshold limit under service tax???

Dear Members,
Please tell me how to calculate threshold limit of Rs. 10 Lacs as in last year point of taxation was on recipt basis but this year it was on accrual basis. In last year Service rendered is about to Rs. 6 Lacs and in current year upto Aug month is Rs. 6 Lacs and payment recieved during the year of which services rendered in previous year is Rs. 3 Lacs.
Please clarify soon!! Its urgent!!!

Thanks in advance..
Sanjay Verma

Replies (6)

last years turnover would not be counted in calculation of service tax for the year, hence the current year turnover only is to be taken.

 

Originally posted by : U S Sharma

last years turnover would not be counted in calculation of service tax for the year, hence the current year turnover only is to be taken.

 

agreed..........

Here i am not agreed, becouse the law says receipt in current years of which service provided in last year shall be added to compute the threshold limit in current year.. But When threshold limit is crosses then it will apply in all subsequent years...

Dear

 

Current year total turn over will be considered or issuance of total invoice or againt invoice, realized amount will be considered.

 

Regards

Ajay Garg

agreee with mr sharma

The exemption is available upto 10 lakhs when the previous year taxable services does not exceed 10 lakhs.

In this case clearly less and therefore available. When the same money is recived there cannot be any tax since it was exempted. Consequentl;y only the services provided and amounts recived upto 1.7.2011 + billing/ completion after that date would be totalled. If this does not exceed Rs. 10 Lakhs there is no liability. Advisable to register when you reach 9 lakhs and start billing the ST once the ST number is allotted.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details