service tax

[V Sethuraman]

Kindly explain the eligibility for availing exemption for Rs. 10 lakhs per financial year for the Service Tax

[CA Rachit Agarwal]

Value of Taxable Services should not exceed Rs. 10 Lacs.

Registration with the Service Tax Department would be required if the value of taxable services exceed Rs. 9 Lacs.

Value of taxable services= Gross Value of all the services less the value non taxable services and exempted services pursuant to notification in the official gazette.

Exemption is to be considered per assessee. Exemption should not be considered either division wise or office wise.

AI Summary

Service tax exemption for small providers applies until taxable services exceed the registration threshold, measured per assessee. Eligibility for the service tax exemption depends on the aggregate value of taxable services: exemption applies where taxable services do not exceed the specified ceiling and registration is required once the value exceeds the registration threshold. Taxable-services value equals gross value of all services less non-taxable services and services exempted by notification. The exemption is applied per assessee and not division-wise or office-wise.