Applicability of Service tax as per exemption limit

[AMBEESH MARWAH]

1. Whether after exceeding 4 lacs exemption we have to deposit the service tax for the initial 4 lacs also . pl advise 2. The total turnover for the year 31.3.2005 is less than 4 lacs . in the current year also it is likely to be less than 4 lacs . not filed any return or charged any srvice tax . what is the legal remedy for avoiding any penalty/prosecution thanks ambeesh marwah

[Ravi Chopra]

1 After exceeding 4 lakh exemption there is no requirement of deposit of service tax for the initial 4 lacks. 2 If you registered with the service tax department, you are advised to submit the half yearly return. 3 If there is any showcause notice, then it is to be seen on merits to avoid the same.

[rishi mohan]

Applicabiliy of service tax takes place after availing exemption limit. There is no need to deposit service tax from the initial level, deposition of service tax can be made after availing exemption limit.

AI Summary

Service tax exemption threshold determines liability; tax applies only after exceeding the threshold and returns remain due. Service tax is chargeable only after the exemption limit is exceeded and there is no requirement to deposit tax relating to the initial exempt amount; registered persons must file half yearly returns, and any showcause notice for non filing or non charging of tax must be met and contested on its merits.