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TMI BlogService tax registration - exemption limitX X X X Extracts X X X X X X X X Extracts X X X X ..... Company A is in consultancy, covered under Management Consultancy Services.As 100% billing ( Total billing Rs. 25 lacs) is outside india, it is covered under Export of services and thus no service Tax. The query is that if it does Local billing of Rs. 6 lacs in a year, will it have to register and charge service tax ?? - Reply By V Ramanujam - The Reply = Export of service is not an exempted serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice and it is like a taxable service virtually zero-rated. Thus in my view, the value of export of service should form part of ‘value of taxable service’ for the purpose of calculating the exemption limit for small service providers. On the other hand, where a service provider renders some service (like Insurance agency etc) where the liability to pay tax is shifted to the service receiver as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er provisions, the value of the service will not form part of ‘value of taxable service’ for calculating exemption limit. Thus, in the example quoted by you, the benefit of exemption on small service providers is not applicable as the aggregate value of service i.e. exports + local billing crosses the exemption limit and service tax is payable on local billing component. - Service tax registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion - exemption limit - Query Started By: - Sanjeev Sharma Dated:- 5-6-2008 Service Tax - Got 1 Reply - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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