Availability of exemption limit

[BAL KRISHAN GARG]

My Dear All Friends , A is having Service Tax Reg.No. since last 2 years and his Gross Receipts from taxable services was Rs.450000 during 2006-07 and Rs.350000 in 2007 -08 and Rs.460000 in 2008 -09 .Whether he can be liable for 2007 -08 and 2008- 09 although the exemption limit was Rs.8 Lacs and Rs.10 Lacs in 2007 -08 and Rs.10 Lacs in 2008-09 .He had filed nil returns during these two year . My basic Question is that when someone is registered with the Service Tax and deposited the tax as per law but in the next year his receipts falls below the exemption limit whether he can be held liable for payment of service tax ? What the law say regarding this ? I will be highly oblidged if someone can clarify this fact . Thanks a lot (BAL KRISHAN GARG )

AI Summary

Service Tax Clarified: No Liability for Turnover Under Rs. 10 Lakhs, Nil Returns Required, Registration Surrender Optional A participant inquired about service tax liability for a registered individual whose gross receipts were below the exemption limits of Rs. 8 lakhs and Rs. 10 lakhs in the financial years 2007-08 and 2008-09. Despite filing nil returns, the query sought clarification on whether tax payment was necessary. Respondents clarified that if the turnover in the previous year did not exceed Rs. 10 lakhs, the individual is not liable for service tax in the current year, but must file nil returns. Additionally, if tax was collected despite the exemption, it must be deposited, and registration can be surrendered if desired.