Multiple choice

Service Tax act/Rules in India has provided exemption to small scale service providers from service tax up to aggregate value of taxable services provided up ___________in a Financial Year.

  1. Rs. 1 lakh

  2. Rs. 2.5 lakhs

  3. Rs. 5 lakhs

  4. Rs. 10 lakhs

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Small service providers were exempt from Service Tax if their aggregate taxable services didn't exceed Rs. 10 lakhs in a financial year. This threshold was designed to support small businesses and reduce compliance burden. The limit has been revised over time but was Rs. 10 lakhs in the relevant period.

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