SERVICE TAX LIMIT - 10 LACK

[Nilesh Nayakpara]

DEAR SIR

GOOD MORNING!!!!

(1) SERVICE TAX TURN OVER LIMIT 10 LACK IS TAKEN BENEFIT FOR ALL SERVICES?

(2) IF I HAVE CROSSED THIS SERVICE TAX LIMIT IN CURRENT YEAR AND PAID SERVICE TAX, BUT IN THE NEXT YEAR I WILL APPLICABLE FOR 10 EXEMPTION LIMIT?

PLEASE ADVICE

THANKS

NILESH

AI Summary

Service tax exemption limit of Rs. 10 lakhs applies to total turnover; exceeding it disqualifies next year's exemption. Notification 6/2005. A user inquired about the applicability of the service tax exemption limit of Rs. 10 lakhs for all services and whether they would be eligible for this exemption in the following year after exceeding the limit in the current year. Responses clarified that the exemption applies to the total gross turnover (GTO) from all services and locations combined. If the GTO exceeds Rs. 10 lakhs in the current year, the exemption is not available in the next year. Reference was made to Notification 6/2005 for further details.