Payment of Service tax exemption when taxable service turnover is less than 10 lakhs

[RameshBabu Kari]

Please clarify the payment of service tax when turnover of taxable services is less than 10 lakhs.

AI Summary

Service Tax Exemption for Businesses with Turnover Under 10 Lakhs Explained; Branded Services Not Exempted. The forum discusses the exemption of service tax for businesses with a taxable service turnover of less than 10 lakhs. According to Notification No. 33/2012-ST, if the turnover in the previous financial year is below 10 lakhs, no service tax is required in the current year. However, if the turnover exceeds 10 lakhs in any year, service tax must be paid in the subsequent year. The exemption does not apply to branded services, which must pay service tax regardless of turnover. Participants emphasize maintaining proper records to substantiate claims of exemption during audits.