Service Tax is a form of indirect tax imposed on specified services called “Taxable Services”. For the purpose of levying service tax, the value of any taxable service should be the gross amount charged by the service provider for the service rendered by him.

Every Service is now required to apply for Service Tax Registration if the Value of service provided during the Financial Year is more than

Rs. 9,00,000, but the Service Tax would be payble only when the value of Service provided is more than Rs. 10,00,000.
Aggregate value of Taxable Services provided (Amount in Rs) Service Tax applicable
Preceding Financial  Year Current Financial year
Less than 10 lakh Less than 10 lakh No service tax
Less than 10 lakh More than 10 lakh Service tax applicable after 10 lakh
More than 10 lakh Less than 10 lakh Service tax applicable from Rs one ,No exemption available

If in the previous financial year the aggregate value of taxable services provided by you was less than Rs.10 lakh and in the present financial year the aggregate value of taxable services provided by you is also less than Rs.10 lakh. Then no need to pay service tax .

If in the previous financial year aggregate value of taxable services provided was less than 10 lakh but this year aggregate value of taxable services provided is more than 10 lakh them you start paying service tax after crossing the threshold of Rs 10 lakh.

If in the previous financial year aggregate value of taxable services provided was more than 10 lakh but this year aggregate value of taxable services provided is less than 10 lakh them you start paying service tax from rupee one.

Service Tax

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