Threshold exemption

[mohan k]

I have crossed receipt of ₹ 13 Lakhs in the yeatr 2001-2012. I have paid service tax for the above receipt of ₹ 3Lakh/-(Rs.10Lakhs exemption). In Receipt of ₹ 10Lakh I have received and paid Service tax for the sum of ₹ 4Lakh. Now Whether i have to pay service tax for the balance of ₹ 6Lakh for the above year.

AI Summary

Service tax must be paid on entire 13 lakhs if turnover exceeds 10 lakhs in subsequent years. A user inquired about the service tax obligations after exceeding receipts of 13 lakhs in the financial year 2011-2012, having already paid service tax on 3 lakhs. Respondents clarified that the threshold exemption for service tax is 10 lakhs. If the turnover exceeds this amount, service tax must be paid on the excess. The first year allows a one-time exemption up to 10 lakhs, but subsequent years require registration and tax payment on the entire amount if it surpasses the threshold. The consensus was that service tax should be paid on the entire 13 lakhs if it pertains to a subsequent year.