TaxTMI 
TaxTMI 
I want to know that basic exemption limit of rs. 10 lakhs in service tax is to be seen every financial year. or is it that once you crossed 10 lakhs limit, you have to pay service tax even though in next financial year amount is below rs. 10 lakhs. ? pls provide reference also.
Basic Exemption of Rs.10 Lakhs in Service Tax
26 Nov 2012 
7 Replies 
7905 Views Asked by
Service tax exemption threshold is governed by preceding-year turnover; entitlement depends on prior-year turnover status.
Entitlement to the basic exemption limit for service tax is determined by the preceding year turnover: if the preceding year's turnover is below the threshold the exemption is available in the current year, and if the preceding year's turnover exceeded the threshold the exemption is not available for the current year; a year with turnover below the threshold restores entitlement for the next year. (AI Summary)
Entitlement to the basic exemption limit for service tax is determined by the preceding year turnover: if the preceding year's turnover is below the threshold the exemption is available in the current year, and if the preceding year's turnover exceeded the threshold the exemption is not available for the current year; a year with turnover below the threshold restores entitlement for the next year. (AI Summary)