Exemption Limit

[DEEPAK SHARMA]

Is 10 Lakh exemption limit for service provider is available every f. year

AI Summary

Service Tax Exemption Limit: Rules for Service Providers on 10 Lakh Threshold and Registration Requirements A query was raised regarding the availability of a 10 lakh service tax exemption limit for service providers each financial year. The first response clarified that the exemption is based on the aggregate value of taxable services in the preceding financial year. If taxable services exceed 10 lakhs, service tax must be collected in the current year. The second response outlined conditions for availing the exemption: if taxable services remain within the limit, no tax is due, but if they exceed 9 lakhs, registration and filing are required. Once the limit is crossed, exemption is lost for the next year unless income falls below 10 lakhs.