Dear Sir,
We are providing services under the category “Commercial Training or Coaching”.

The value of taxable service was Rs. 9.00 lakhs during 2010-11. We have obtained Service Tax Registration in April 2011 anticipating that the value of taxable service would exceed Rs.10.00lakhs during 2011-12. However during the month of August 2011, our taxable turnover has reached Rs. 12.00 lakhs.

Now the question is should we pay service tax on the entire turnover of Rs. 12.00 lakhs or should we reduce Rs. 10.00 lakhs and pay service tax on the balance amount of Rs. 2.00 lakhs.

Kindly give us your considered opinion on this issue at an early date.

With Regards
S.Rangaraj
Hyderabad
Cell: <..clipped for privacy..>


Admin’s Response:

Currently, Tax Gyan experts only answer Income Tax and Home Loan related queries. Please refer our FAQ to know more.

Nevertheless, publishing the query here to invite comments from users.