service tax laiability

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  1. rajputassociatesjpr

    rajputassociatesjpr New Member

    i would like to know that if i had started a business and in the very first year my earnings are below 10 lakhs and in the second financial year my business crosses 10 lakhs limit ,do i have to pay the service tax for the previous year also or will i be exempted for paying tax for the previous year and pay for the current financial year,what does the law say kindly brief me
  2. ZED

    ZED Well-Known Member

    As per Notification No. 33/2013 (SSP exemption)
    Taxable services of aggregate value not exceeding ten lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66B of the said Finance Act shall be exempt.

    Therefore, you do not need to pay any tax in respect of that 1st year if your turnover did not exceeded 10 Lakhs. Further in this year also you do not need to pay ST on value of services upto 10 Lakhs, you would need to pay on those services which are provided after reaching the level of 10 Lakhs.

    Regarding Registration
    The Service Tax (Registration of Special Category of Persons) Rules, 2005

    As per R3(2) Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds nine lakh rupees shall make an application to the jurisdictional Superintendent of Central Excise in such form as may be specified, by notification, by the Board, for registration within a period of thirty days of exceeding the aggregate value of taxable service of nine lakh rupees.
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