19 December 2014
Respected sir, A new service provider providing services of construction of commercial complex, residential flats and shops. During F.Y. 2013-14, He received Rs. 22,00,000/- towards booking amount from various persons. Whether the assessee will get any basic exemption of Rs. 10,00,000/- . Whether the asseessee is liable to pay tax on remaining Rs. 12,00,000/- (Rs 22,00,000/- minus Rs. 10,00,000/).
What will be if in next year the assessee gets Rs. 8,00,000/- towards booking amount ? Whether basic exemption limit of Rs. 10,00,000/- will be available again ? (In the present case the asseessee is a new assessee and did not provided any other service in last years)
20 December 2014
For the Year 2013-2014,which is his first year of operation Service tax shall be paid on 12,00,000 i.e after deducting 10,00,000 from 22,00,000 after availing abatement as relevant.
For the year 2014-2015 Even if the taxable turnover is below 10,00,000 i.e 8,00,000 service tax shall be paid on 8,00,000 apllying the abated rate.
As per notification No.33/2012,once the limit of 10,00,000 is crossed,service tax has to be paid each subsequent year.
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