basic threshold limit

[Guest]

Sir

If I am providing two services one of which is exempt under mega notifications amounting 6 lacs and another taxable service amounting 6 lacs, do i need to register for service tax? How my tax liability will be determined?

 

Thanx

[YAGAY andSUN]

No, you don't need to get registration certificate as yet, collect the tax and pay to the Government.

[Guest]

Thanx Sir for your reply.

That would mean I need to aggregate exempted services with taxable services to check basic threshold limit ??

[YAGAY andSUN]

No, amount of exempted service would not be added in the amount of taxable service to calculate the threshold limit under service tax laws.

[Guest]

Sir

 

Thanx a lot for your kind replies.

AI Summary

Exempt services exclusion: taxable turnover alone determines registration threshold; register and pay tax if applicable. Exempt services under the notifications are not included in the computation of turnover for the basic threshold for service tax registration. Tax liability, collection and payment obligations arise solely on the value of taxable services; aggregation of exempt and taxable service values is not required when assessing the registration threshold.