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

[NEERAJ KUMAR, RANCHI]

No, in the next year you will not be entitled for any excemption.

[Nilesh Nayakpara]

thank you sir

[NANDKUMAR SAGWEKAR]

The basic exemption from payment of ST is Rs.10 Lakhs for a service provider for all the services provided and from all locations .For e.g. if your are providing the services from A B C D - 4 locations and 4 services , then GTO of all these locations and services to be clubbed together for calculating the limit of Rs. 10 Lakhs. In current year your GTO is exceeds Rs.10 Lakhs , so you are not eligible for exemption in next year. Refer Not 6/2005. dtd. 01.03.2005 as ameneded for other terms and conditions.

Thanks

A M SHEMBEKAR

CELL 91-9421187122

[Nilesh Nayakpara]

ok, thak you very much sir

AI Summary

Service tax exemption threshold: crossing combined turnover disqualifies provider from exemption in the following year.
Service tax basic exemption operates as an aggregate turnover threshold of Rs. 10 Lakhs applying across all services and all locations for a single provider; gross turnover from every service and place must be clubbed to determine eligibility. If a provider's aggregate turnover in the current year exceeds the threshold, the provider will not be entitled to claim the basic exemption in the following year, subject to terms and conditions in the applicable notification.