Sir in previous year i have a rental income morethan 10 lakhs hence i paid service tax on them But in current year rental income less than 10 Lakhs still i have to PAy S.T on the amount????
Gowtham (Accounts Manager ) (89 Points)
28 December 2015Sir in previous year i have a rental income morethan 10 lakhs hence i paid service tax on them But in current year rental income less than 10 Lakhs still i have to PAy S.T on the amount????
CA Reshma K N
(CHARTERED ACCOUNTANT)
(96 Points)
Replied 28 December 2015
Yes Mr. Gowtham. You have to collect and pay to the Govt. The threshold of ten lakhs is only for making the service tax applicable. Once the rules and the allied laws are made applicable, irrespective of the value of gross receipts, service tax is payable.
Gowtham
(Accounts Manager )
(89 Points)
Replied 28 December 2015
yes.. but in a case next year Can i can enjoy SSI (since this year taxable service does not exceed 10 lakhs ) ???
CA Reshma K N
(CHARTERED ACCOUNTANT)
(96 Points)
Replied 28 December 2015
Threshold of ten lakhs is only a one time benefit. If the gross receipts exceed the threshold in one year, you are liable to ST from then in every year irrespective of the gross reciepts.
CA Reshma K N
(CHARTERED ACCOUNTANT)
(96 Points)
Replied 28 December 2015
See the attached document.
Jatin Grover
(Audit Assistant)
(359 Points)
Replied 28 December 2015
A Service provider is called Small Service Provider(SSP) only if value of taxable service provided in previous year is less than Rs.10 Lakhs. Hence in your case service tax shall be payable in the current year even thoough value of service provided in current year is less than 10 lakhs.
Ravi Kumar Somani
(Indirect Taxes Specialization)
(3893 Points)
Replied 28 December 2015
Agree with the above view. Further you can claim the property tax paid as deduction from the purpose of payment of service tax.
kajol jain
(11 Points)
Replied 28 December 2015
kajol jain
(11 Points)
Replied 28 December 2015
Mir Irshad Ali
(Partner)
(192 Points)
Replied 29 December 2015
If the taxable value in 2014-15 exceeded Rs. 10 lacs, then exemption will not be available in 2015-16 even if the taxable value in 2015-16 is less than Rs. 10 lacs.
However, if the taxable value in 2015-16 is less than Rs. 10 lacs, then in 2016-17, the exemption will be available upto Rs. 10 lacs in terms of exemption Notfn No. 33/2012-ST.
Pragya
(CHARTERED ACCOUNTANT)
(104 Points)
Replied 29 December 2015
My opinion is different in this regard. In current year you are required to pay service tax on total turnover, since in previous financial year your turnover was more than Rs. 10 lakhs. But in next year you will be eligible for SSP Benefit as this exemption is totally based on turnover of previous year.
Kamal vashist
(Accountant)
(183 Points)
Replied 29 December 2015
You must have to pay service tax on rental income even it is less than 10Lakh
once this act become applicable then it shall be applicable year by year
AMBUJ SHARMA
(CHARTERED ACCOUNTANT)
(243 Points)
Replied 31 December 2015
you are liable to pay service tax.
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