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Calcutaion of exemption limit for service tax

Service Tax (Legacy) 2790 views 3 replies

How to calculate the taxable service when the service tax  is applicable  from 16-5-2008.

Eg. Payment Recd in April Rs. 275000 (Against march Billing)

       Payment recd  upto 16.5.2008  Rs. 400000 (Againdt April Billing)

       Payment recd after 16.5.2008 RS. 400000 (Against April Billing)

      Payment recd in June Rs. 500000 (Against May Billing)

How to calculate Rs. 1000000 exemption limit

Replies (3)

whatever the services that has been provided upto 15/5 is not taxable whether payment is received after 16/5/08.

The mode of calculation of Rs. 10 lacs is different for two different purposes.  For the purpose of determining eligibility in current year, what is relevant is that "aggregate value of taxble services rendered" in previous  F.Y. should not exceed Rs. 10 lacs, while for purpose of exemption upto first Rs 10 lacs in current year, service tax is exempt to the extent of 'aggregate value not exceeding Rs.10 lacs' i.e. the sum total of first consecutive payments received during the current F.Y.

Hope this will serve your purpose, Thanks,

S, Banerjee

How to calculate the taxable service when the service tax  is applicable  from 16-5-2008.

Eg. Bills raised in April Rs. 507500  (received on 15/05/08)

Bills raised in May  Rs. 507500 (received on 6/6/08)

Bills raised in June Rs. 507500(received on 9/7/08)

        

How to calculate Rs. 1000000 exemption limit


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